Stablecoins have become a cornerstone of the digital economy, bridging traditional finance with blockchain innovation. Among the latest entrants in this space is Global Dollar (USDG) — a regulated, dollar-pegged stablecoin designed for real-world utility and enterprise adoption. Issued by Paxos Dollar Singapore Ltd and regulated by the Monetary Authority of Singapore (MAS), USDG combines compliance, transparency, and institutional-grade infrastructure to meet the growing demand for trustworthy digital dollars.
Backed by cash deposits, short-term U.S. Treasury securities, and other high-liquidity assets, USDG maintains a strict 1:1 peg to the U.S. dollar. It operates within the Global Dollar Network, a consortium of leading fintech and crypto firms including Paxos, Robinhood, Kraken, Nuvei, Anchorage Digital, Bullish, and Galaxy Digital. This collaborative ecosystem aims to expand stablecoin use cases across payments, remittances, trade finance, and decentralized applications.
Understanding Stablecoins and Regulatory Challenges
Stablecoins are digital assets pegged to fiat currencies like the U.S. dollar, offering price stability in an otherwise volatile cryptocurrency market. Their value derives from reserves held in real-world assets, making them ideal for transactions, savings, and cross-border transfers.
However, regulatory scrutiny has intensified as stablecoins gain mainstream traction. In December 2024, Tether’s USDT was delisted from European markets for failing to comply with the Markets in Crypto-Assets (MiCA) regulation — a landmark framework requiring full transparency, reserve backing, and operational accountability. This move highlighted a critical gap: even widely used stablecoins can face restrictions if they don’t meet evolving global standards.
This regulatory uncertainty hampers institutional adoption. Banks and financial service providers cannot risk using non-compliant digital assets when client fund security is at stake. That’s where USDG enters the picture — built from the ground up to align with international regulations and inspire trust among enterprises.
👉 Discover how compliant stablecoins are reshaping global finance
What Is USDG (Global Dollar)?
Global Dollar (USDG) is a U.S. dollar-pegged stablecoin issued by Paxos Dollar Singapore Ltd, a subsidiary of Paxos Trust Company. It launched on November 1, 2024, under the oversight of Singapore’s central bank — the Monetary Authority of Singapore (MAS) — ensuring adherence to robust financial regulations.
USDG runs on the Ethereum blockchain as an ERC-20 token, enabling seamless integration with decentralized applications (dApps), wallets, and exchanges. While currently available only to select institutions such as custodians, exchanges, payment processors, merchants, and banks, retail investors can already access USDG through certain centralized platforms.
The project is powered by the Global Dollar Network, a strategic alliance of top-tier financial and crypto companies committed to advancing stablecoin adoption. The network incentivizes participation by distributing approximately 97% of its revenue back to members who contribute liquidity and drive ecosystem growth.
About Paxos: A Regulated Financial Innovator
Paxos stands out as one of the most trusted names in blockchain finance. Licensed by the New York Department of Financial Services (NYDFS), it operates as a regulated financial institution offering tokenization infrastructure and digital asset services.
The company has issued several compliant digital assets, including:
- PayPal USD (PYUSD)
- Pax Dollar (USDP)
- Pax Gold (PAXG)
Paxos Digital Singapore specifically handles USDG issuance, ensuring it meets MAS’s upcoming stablecoin regulatory framework. Meanwhile, its affiliate Paxos International offers Lift Dollar (USDL) — a yield-bearing stablecoin that generates returns for holders.
With over $540 million in funding from elite investors like Founders Fund, PayPal Ventures, and Mithril Capital, Paxos is well-positioned to lead the next generation of regulated digital currency solutions.
Key Features of USDG
Regulatory Compliance
USDG is backed by Paxos Digital Singapore’s Major Payment Institution (MPI) license from MAS. This allows the issuer to operate under stringent anti-money laundering (AML), know-your-customer (KYC), and capital adequacy requirements — setting a new benchmark for regulatory alignment in the stablecoin space.
Full 1:1 Dollar Backing
Every USDG token is fully backed by reserves consisting of:
- U.S. dollar deposits
- Short-term U.S. Treasury bills
- High-quality cash equivalents
These assets are held in segregated accounts at DBS Bank, one of Southeast Asia’s largest financial institutions, which serves as Paxos’ primary banking partner for cash management and custody.
Transparency and Audit Verification
Transparency is central to USDG’s design. Paxos publishes monthly reserve reports, independently audited by Enrome LLP, a certified accounting firm following standards set by the Institute of Singapore Chartered Accountants (ISCA).
These reports allow anyone to verify that reserves match or exceed circulating USDG supply — reinforcing trust and reducing counterparty risk.
👉 See how transparent reserve reporting builds investor confidence
How Does USDG Work?
USDG functions as a fiat-collateralized stablecoin using a simple 1:1 issuance model:
- When a user deposits $1 with Paxos, one USDG token is minted.
- When a user redeems USDG, the equivalent amount is burned and converted back to fiat.
This mechanism ensures price stability and redeemability at par value. The reserves are actively managed for liquidity and safety, prioritizing low-risk instruments like U.S. Treasuries.
Currently running on Ethereum, USDG benefits from broad developer support and DeFi interoperability. In the future, subject to regulatory approval, it may expand to other blockchains to increase reach and utility.
Smart contract code for USDG is publicly accessible via Etherscan and GitHub, allowing developers and auditors to review its functionality and security.
Comparing USDG vs USDT vs USDC
| Feature | USDG | USDT | USDC |
|---|---|---|---|
| Issuer | Paxos Digital Singapore | Tether Limited | Circle |
| Regulation | MAS-regulated (Singapore) | Limited jurisdictional oversight | Regulated in U.S., under MiCA in EU |
| Reserve Transparency | Monthly audited reports (ISCA standard) | Regular attestations | Monthly audits by Grant Thornton |
| Blockchain Support | Ethereum (ERC-20) | Multi-chain | Multi-chain |
| Institutional Backing | Global Dollar Network partners | Private company | Coinbase-backed |
While USDT remains dominant in volume and USDC leads in U.S. regulatory alignment, USDG differentiates itself through proactive compliance with Asian and global standards, making it a compelling option for international enterprises seeking regulatory-safe digital dollars.
Is USDG a Good Investment?
Stablecoins like USDG are not designed as speculative investments but rather as value-preserving tools within the crypto ecosystem. They offer:
- Protection against cryptocurrency volatility
- Liquidity for trading and DeFi activities
- Cross-border transfer efficiency
Because USDG is backed by high-quality liquid assets and regulated by MAS, it presents lower credit and operational risk compared to less-transparent alternatives. However, investors should still consider:
- Fluctuations in U.S. monetary policy affecting dollar value
- Potential changes in global crypto regulation
- Smart contract or custodial risks (though minimized via audits)
For users seeking a reliable store of value with strong governance and transparency, USDG represents a forward-thinking choice.
Recent Developments: Paxos & Standard Chartered Partnership
In a major advancement for institutional crypto infrastructure, Paxos has partnered with Standard Chartered Bank to enhance USDG’s reserve management capabilities. The collaboration brings traditional banking expertise into stablecoin operations, providing:
- Enhanced cash management
- Secure transaction processing
- Institutional-grade custody solutions
This partnership signals growing confidence from legacy financial institutions in regulated digital currencies — paving the way for broader integration into global finance systems.
Frequently Asked Questions (FAQ)
Q: Is USDG fully backed by real dollars?
A: Yes. Each USDG token is backed 1:1 by U.S. dollars held in cash deposits, short-term U.S. Treasuries, and other high-liquidity assets managed by Paxos and custodied at DBS Bank.
Q: Can individuals buy USDG?
A: Yes. While initially targeted at institutions, retail investors can purchase USDG on select centralized exchanges that list the token.
Q: How is USDG different from USDC or USDT?
A: USDG distinguishes itself through its regulation under Singapore’s MAS framework, monthly ISCA-compliant audits, and its revenue-sharing Global Dollar Network — positioning it uniquely for enterprise adoption in Asia and beyond.
Q: Where can I verify USDG’s reserves?
A: Reserve reports are published monthly on paxos.com/usdg-transparency and audited by Enrome LLP according to ISCA standards.
Q: Will USDG launch on other blockchains?
A: Yes — while currently available on Ethereum as an ERC-20 token, future expansion to additional networks is planned pending regulatory approvals.
Q: Does holding USDG earn interest?
A: No — USDG itself does not generate yield. However, Paxos offers a separate product called Lift Dollar (USDL) that provides interest-bearing features.
Conclusion
Global Dollar (USDG) represents a significant step forward in creating a compliant, transparent, and enterprise-ready stablecoin. By combining MAS regulation, top-tier institutional partnerships, audited reserves, and a collaborative network model, USDG addresses many of the shortcomings seen in earlier stablecoins.
As global regulators tighten oversight on digital assets, projects like USDG — built on accountability and real-world integration — are likely to lead the next wave of crypto adoption. Whether you're an institution exploring digital dollar solutions or an individual seeking secure exposure to blockchain-based finance, USDG offers a credible pathway forward.
👉 Explore how next-gen stablecoins are transforming financial infrastructure