【USDG】Stablecoin that provides reserve management profit sharing to partners / Issued by Paxsos and compliant with regulations / @global_dollar
Issued by Paxsos Singapore and approved by the Monetary Authority of Singapore (MAS) as a stablecoin, it is a regulatory compliant stablecoin.
Good morning.
Mitsui from web3 researcher.
Today I researched the USDG (Global Dollar Network).
🟢What is USDG?
✨Released in November 2024
💬with revenue sharing capabilities to partnersStablecoin
🟢What is USDG?
The USDG (Global Dollar Network) is a stable coin pegged to the US dollar.It is initially issued on the Ethereum chain, with plans to support other chains in the future.
It will be issued by Paxos Singapore and has received approval from the Monetary Authority of Singapore (MAS) to issue stable coins, making it a regulatory compliant stable coin.DBS, Singapore's largest bank by assets, will be the primary banking partner and will assist Paxos with cash management and custody of USDG reserves.
Other initial partners include Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos, and Robinhood.
The two main features of the program are as follows
(1) Profit distribution to partners
The current stablecoin ecosystem is such that only the issuer has a monopoly on the revenues related to its reserves.There is no profit sharing for the platforms that handle them.
Global Dollar Network, on the other hand, partners receive up to 100% revenue sharing.They also receive additional earnings on USDG mints and redemptions.
The logic of this detailed revenue sharing was not disclosed, but it appears that only a fee is charged for using the Paxos side of the system, while the partner platform receives the rest of the revenue share of the reserve.
(2) Regulatory Compliance
Of the more than 200 stablecoins currently available, only a handful meet these criteria; USDG is licensed by the Monetary Authority of Singapore (MAS) and offers regulatory compliant stablecoins.
✨Released in November 2024
USDG was announced on November 4, 2024.At the time of research, 15,048,120 USDG has been issued, although it is about 2 weeks old.
Currently, USDGs can be issued by partners (Global Dollar Netwok participating companies).Partners are invited by invitation only, but can apply to become a partner.As for securing USDG without becoming a partner, it is currently accessible through Kraken, Anchorage Digital, Paxos, and others.
💬Stablecoin with revenue sharing capabilities to partners
The last is a consideration.
I think the most important feature of USDG is its ability to distribute revenue to partners.Indeed, the existing stable coins USDC and USDT are profitable for the issuers and not for the platforms that handle them.
I am not sure if this situation is necessarily bad, since it was the issuer that took the risk and promoted it, but I felt that USDG is a very good strategy for latecomers to catch up.
Existing crypto asset exchanges, for example, may increase convenience for users by handling existing stable coins, but it does not lead to profits for their own companies.On the other hand, it is very difficult to issue stablecoins on your own.
The reason for this is not only the auditing and reserve management involved in issuing stablecoins, but above all the need to develop distribution partners and increase liquidity.Specifically, we need to get them handled by as many DeFi as possible.
It is very difficult for a single company to do all of that development and approach USDT and USDC.In this regard, USDG is not its own brand, but it can enjoy the benefits of the stablecoin business because it receives revenue sharing on USDG reserves issued via its own company.
While there are some fees, they are like system fees in the stablecoin issuance process and are within the margin of error.Rather, Paxsos, the stablecoin operator since 2018, is providing the infrastructure so that we don't have to worry about managing it ourselves.
Although it has just been released and there are not many operational partners yet, the initial partners are quite cooperative and the mechanism looks interesting, so we are looking forward to its further development.
This is the research for USDG (Global Dollar Network)!
🔗Reference:HP
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mitsui
A web3 researcher. Operating the newsletter "web3 Research" delivered in five languages around the world.
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