Paxos launches USDG, an EU-compliant stablecoin, and teamed up with Robinhood, Mastercard and USDC to compete for a compliant track

The Zhitong Finance App learned that issuer Paxos released the dollar-linked stablecoin Global Dollar (USDG-USD) to users across the European Union on Tuesday. The statement stated that the stablecoin is supported by institutions such as retail trading platform Robinhood (HOOD.US), payment giant Mastercard (MA.US), and crypto exchange Kraken, and will soon be launched in the EU region.

This launch will allow more than 450 million consumers in 30 countries to use USDG. The token has been certified by the European Union's Crypto Asset Market Regulation (MiCA) and is regulated by the Finnish Financial Supervisory Authority (FIN-FSA) and the Monetary Authority of Singapore (MAS).

USDG is issued in Europe by Paxos Prescribed Europe OY, a Finnish entity regulated by the Finnish Financial Supervisory Authority (Financial Supervisory Authority), and its structure complies with the EU's new crypto asset market framework. Paxos will hold a portion of USDG's cash reserves in European banks and promise one-on-one redemptions to meet MiCA's strict support and audit rules.

Despite strict cryptocurrency laws in the EU, demand for dollar-pegged currencies has surged, according to Paxos data. The company expects USDG to compete for market share with other regulated stablecoins, such as Circle (CRCL.US) USDC. USDC is the first stablecoin to receive a MiCA license and is currently the largest MiCA compliant token.

Launched in November 2024, USDG supports the Global Dollar Network (GDN), a coalition of industry leaders dedicated to promoting the popularity of stablecoins. Companies such as Robinhood, Kraken, Paxos, Anchorage, Nuvei, Bullish, and Galaxy are all founding partners.

Walter Hessert (Walter Hessert), head of strategy at Paxos, said: “This move comes at a time when demand for stablecoins is rapidly rising.”

Recently, during the first Ethereum Community Conference held in Europe, US stock brokerage giant Robinhood officially announced the launch of the most ambitious crypto product suite in history, releasing a series of new crypto-related products, including tokenized stocks, exchange-traded funds, crypto perpetual futures, and crypto staking services.

This series of initiatives not only strengthens Robinhood's core competitiveness in the crypto market, but also marks the beginning of a “tokenized Wall Street”.