Market News

Paxos and Robinhood Propel Solana's USDG Stablecoin with Global Network Expansion

The Global Dollar Network (GDN), co-founded by Paxos and Robinhood, is expanding its stablecoin initiative by adding 19 new members to promote the adoption of its Solana-based USDG stablecoin.

New members include notable firms like BitMart and Zodia Custody, alongside various regional exchanges and payment providers.

Despite the low-profile nature of these partnerships, GDN aims to strengthen its presence in different markets and anticipates more high-profile collaborations once regulatory clarity improves.

Current U.S. stablecoin legislation remains uncertain, although optimism surrounds potential bipartisan agreements that could support GDN's goals.

Paxos's strategy head, Walter Hessert, expressed confidence that a federal framework could enhance the growth of USDG and the GDN's partner network.

GDN's rewards model redirects economic benefits to partners, allowing them to share in the revenue generated from reserves, a departure from traditional issuer-centric systems.

With USDG's total supply currently around $285 million, GDN expects significant growth by year-end fueled by its expanding partner network.

The current membership of over 25 partners gives USDG access to a user base of more than 42 million globally, indicating robust adoption potential.

As stablecoin markets grow, experts note that achieving broader acceptance hinges significantly on establishing clear regulatory environments.

Overall, GDN's collaborative approach, led by Paxos and Robinhood, positions USDG favorably in the evolving landscape of stablecoins on the Solana blockchain.