Daniel Walker
Paxos has officially introduced USDG, a fully collateralized, U.S. dollar-pegged stablecoin, across the European Union. The launch marks a major milestone in compliant crypto innovation, as USDG is backed by major industry players like Robinhood, Kraken, Galaxy Digital, Anchorage Digital, and others.
Issued by Paxos Issuance Europe OY, a Finnish entity supervised by Finlandโs Financial Supervisory Authority, USDG was built to align with the EUโs Markets in Crypto-Assets (MiCA) regulation. Paxos ensures 1:1 redemptions and will hold a portion of USDGโs reserves with European banks, satisfying MiCAโs rigorous audit and backing requirements.
A Regulated Alternative to Tether and USDC in the EU
Despite Europe’s tight regulatory climate, demand for dollar-linked stablecoins continues to surge, Paxos noted. The firm believes USDG will offer a compelling alternative to incumbents like Circleโs USDC, which was the first stablecoin to obtain a MiCA license.
USDG is now live on Kraken, Gate.io, CoinsPaid, and Zodia Custody, and supports transactions across Ethereum, Solana, and Ink blockchains. According to Paxos Head of Strategy Walter Hessert, the offering gives 450 million EU citizens access to a trusted, compliant dollar-pegged stablecoin.
The Global Dollar Network: A Strategic Alliance
First announced in November 2024, USDG is part of the Global Dollar Network (GDN) โ a consortium of fintech and crypto firms working to expand stablecoin infrastructure globally. Founding members include Paxos, Robinhood, Anchorage, Bullish, Nuvei, and Galaxy.
USDG Joins a $160B Stablecoin Market
The stablecoin enters a highly competitive sector still dominated by Tether (USDT) and Circle (USDC), which together control nearly 90% of the $160 billion stablecoin market, per PRIME. As of now, CoinGecko data reports USDG’s market cap at $322 million.
Paxos also issues three other dollar-backed tokens, including USDP, PayPalโs PYUSD, and USDL, a yield-generating stablecoin.
