Global Dollar (USDG)
Global Dollar (USDG) is a US dollar-backed stablecoin issued by Paxos Digital Singapore Pte. Ltd. and Paxos Issuance Europe Oy. It is designed to be redeemable for one US dollar per token. Tokens circulate on public blockchains, while the issuing companies manage reserves and control issuance and redemption.[1]
USDG is the settlement asset of Global Dollar Network (GDN), a business network whose partners receive incentives for contributing to stablecoin distribution and use. The token and the partner network are related but distinct: GDN coordinates commercial participation, rather than operating a separate blockchain.[2][3]
History
Paxos introduced USDG on Ethereum in a Singapore release dated 1 November 2024; its newsroom page is dated 31 October. The announcement named DBS Bank as the primary banking partner for reserve custody and cash management. USDG was the first digital asset issued by Paxos Digital Singapore.[4]
GDN followed in November 2024 with seven founding participants: Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood. Its launch announcement described an advisory committee with partner representation. Reuters independently covered the launch and its proposed sharing of economic benefits among participating businesses.[3][5]
On 1 July 2025, Paxos announced USDG's launch in the European Union under the Markets in Crypto-Assets Regulation (MiCA), with distribution through providers including Kraken and Gate. The announcement listed Ethereum, Solana and Ink as supported networks at that time.[6]
In July 2026, GDN reported more than 150 enterprise partners and more than US$3 billion of USDG in circulation. These are dated figures reported by the network, rather than a continuously updated measure of supply or independent proof of payment adoption.[7]
Issuers and regulation
Paxos Digital Singapore is listed in the Monetary Authority of Singapore's Financial Institutions Directory as a Major Payment Institution. Paxos announced its full approval to provide digital payment token services on 1 July 2024.[8][9]
Paxos described USDG at launch as substantively compliant with Singapore's forthcoming single-currency stablecoin framework. This description concerns the forthcoming framework, not the issuer's existing payment institution licence. On 1 September 2026, MAS opened a consultation on legislation to implement the framework, scheduled to close on 16 October 2026. Its proposals reserved the designation of a MAS-regulated stablecoin for issuers licensed under that framework and meeting its requirements.[4][10][11]
The European issuer, Paxos Issuance Europe Oy, is a Finnish electronic money institution supervised by the Finnish Financial Supervisory Authority. Its whitepaper treats USDG as an electronic money token under MiCA. The whitepaper also states that it has not been approved by an EU competent authority and that USDG is outside EU deposit guarantee and investor compensation schemes.[12]
Reserves and redemption
The launch announcement described the reserve assets as US dollar deposits, short-duration US government securities and cash equivalents, with DBS providing reserve banking services. Paxos's stablecoin terms describe segregated custodial accounts and eligible debt instruments held for token holders. Reserve assets and their custody are separate from the blockchain records of token balances.[4][13]
Paxos publishes monthly USDG reserve attestations. Its transparency page identifies KPMG LLP as the independent firm issuing reports posted from 27 February 2026 onward and Enrome LLP as the firm responsible for earlier reports. The page describes examinations under Institute of Singapore Chartered Accountants standards.[14]
Direct redemption through the Paxos platform requires an account and compliance checks. The general terms provide for one-for-one redemption, processing under a redemption schedule and possible minimum amounts tied to bank wire fees. The EU whitepaper separately describes EEA holders' right to redeem at par without a redemption fee, subject to compliance review. A right to issuer redemption does not fix the price available on an exchange.[13][12][15]
Global Dollar Network and rewards
GDN distributes commercial incentives to participating partners according to activities such as minting, custody and acceptance of USDG. Its website advertises the possibility of partners receiving up to 100% of reserve returns generated by balances on their platforms, alongside other incentives. The calculator's terms expressly describe estimates rather than guaranteed payments; actual arrangements depend on agreements, network parameters, market conditions and applicable law.[2]
Paxos's Singapore whitepaper states that USDG holders are not entitled to interest earned on the reserves. This partner model differs from a token that automatically accrues interest to every holder. Paxos has separately described Lift Dollar (USDL) as distributing daily yield to eligible end holders, while USDG's network rewards distributors and other participating businesses. A platform's lending or reward product involving USDG has its own terms and risks.[16][7][17]
The September 2026 MAS consultation proposed prohibiting holder interest on MAS-regulated stablecoins while expressly distinguishing revenue-sharing, distribution and other commercial arrangements with third parties. This was a proposal under consultation at the article's research date, rather than an enacted prohibition demonstrated by that document.[11]
Blockchains and implementation
As of 9 October 2026, the issuer's product page listed USDG on Arbitrum, Ethereum, Ink, Mantle, Robinhood Chain, Solana and X Layer. GDN announced native issuance on Mantle on 3 September 2026 and Arbitrum One on 5 October 2026.[1][18][19]
Paxos's EU whitepaper describes ERC-20 implementations on Ethereum and several EVM networks, and a separate SPL Token-2022 implementation on Solana. The published EVM Solidity implementation uses the name Global Dollar, symbol USDG and six decimal places. These source-level details do not establish identical deployment configurations on every network.[12][20]
The published EVM implementation gives designated roles control over supply and administrative functions. Supply controllers can mint and burn, with configurable limits and address restrictions. Other roles can pause ordinary transfers and approvals, freeze and unfreeze addresses, and wipe a frozen balance while reducing the total token supply. The USDG implementation is upgradeable, with upgrades gated by an administrator role.[21][22][20]
These controls make USDG a centrally administered asset even when it circulates on a permissionless blockchain. The public source explains available functions; it does not identify all current role holders or prove the present state of every deployed contract.[23]
Paxos's terms reserve powers to freeze tokens and upgrade their contracts, including in response to legal directives.[13]
Uses and limitations
GDN describes USDG as an asset for trading, collateral, settlement, treasury operations and payments. Its July 2026 report identified integrations with Aave, Morpho, Maple and Solana lending services. Integration availability should be distinguished from independently measured transaction demand, and a deposit into a lending product introduces a relationship beyond holding USDG itself.[19][7]
USDG's one-dollar reference value and reserve arrangements do not remove liquidity, custody, banking, operational or smart-contract risks. The Financial Stability Board's recommendations for stablecoins address governance, risk management, disclosure and timely redemption, reflecting the distinction between a stable-value design and assured performance.[15][17]
Paxos's terms distinguish native issuer tokens from third-party bridged representations. A third-party bridged token is not issued or redeemed by Paxos merely because it represents a Paxos stablecoin. It can carry additional bridge and messaging risks, and a possible future conversion to native issuance is an option for Paxos rather than an obligation.[13]
See also
References
- ↑ 1.0 1.1 About USDG, Global Dollar, accessed 9 October 2026.
- ↑ 2.0 2.1 Global Dollar Network, accessed 9 October 2026.
- ↑ 3.0 3.1 Introducing Global Dollar Network, Paxos, 4 November 2024; Singapore release dateline 5 November 2024.
- ↑ 4.0 4.1 4.2 Paxos Introduces Global Dollar (USDG), Paxos, 31 October 2024; Singapore release dateline 1 November 2024.
- ↑ Hannah Lang, Crypto Firms Including Kraken and Robinhood Launch Global Stablecoin Network, Reuters, republished by Inc., 5 November 2024.
- ↑ Global Dollar (USDG) Launches in the EU, Paxos, 1 July 2025.
- ↑ 7.0 7.1 7.2 Global Dollar Network crosses 150 partners, $3B in circulation, and tens of millions in reward payouts, Global Dollar, 21 July 2026.
- ↑ Financial Institutions Directory: Paxos Digital Singapore, Monetary Authority of Singapore, accessed 9 October 2026.
- ↑ Paxos Secures Full Approval to Offer Digital Payment Token Services from Monetary Authority of Singapore, Paxos, 1 July 2024.
- ↑ Consultation on Proposed Amendments to the Payment Services Act 2019 for Stablecoins Regulation, Monetary Authority of Singapore, 1 September 2026.
- ↑ 11.0 11.1 Consultation paper, Monetary Authority of Singapore, September 2026, sections 2.1–2.3 and 3.2.
- ↑ 12.0 12.1 12.2 USDG EU Whitepaper, Paxos, accessed 9 October 2026.
- ↑ 13.0 13.1 13.2 13.3 US Dollar-Backed Stablecoin Terms and Conditions, Paxos, accessed 9 October 2026.
- ↑ Global Dollar (USDG) Transparency Reports, Paxos, accessed 9 October 2026.
- ↑ 15.0 15.1 High-level Recommendations for Global Stablecoin Arrangements: Final report, Financial Stability Board, 17 July 2023.
- ↑ USDG and Global Dollar Network: Reshaping the Future of Stablecoins, Paxos, 12 November 2024.
- ↑ 17.0 17.1 Global Dollar (USDG) White Paper, Paxos Digital Singapore, accessed 9 October 2026, Reserves and Risks.
- ↑ USDG is Now Live on Mantle, Powering Its Real-World Asset Push, Global Dollar, 3 September 2026.
- ↑ 19.0 19.1 Arbitrum Joins Global Dollar Network, Global Dollar, 5 October 2026.
- ↑ 20.0 20.1 USDG.sol, Paxos Global, accessed 9 October 2026.
- ↑ PaxosTokenV2.sol, Paxos Global, referenced source commit.
- ↑ SupplyControl.sol, Paxos Global, referenced source commit.
- ↑ Global Dollar (USDG) contract repository, Paxos Global, accessed 9 October 2026.