A group of traditional financial institutions and crypto companies, including Robinhood, Galaxy Digital, Kraken and Paxos, have announced the launch of USDG, a new stablecoin pegged to the US dollar.
The aim of the initiative is to increase the use and acceptance of stablecoins globally.
According to Paxos, the lack of competition in the regulated stablecoin market has hindered the growth of the sector.
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The introduction of USDG aims to alter this dynamic with a fairer and more inclusive model, which will also attract mainstream users and promote the use of stablecoins for different purposes.
The network has been specifically designed to support the global expansion of Paxos' USDG stablecoin, which launched on November 1. However, the stablecoin is currently only available on the Ethereum blockchain.