Paxos Launches Global Dollar Stablecoin in the EU
Paxos, a key player in the cryptocurrency sector, has successfully launched its Global Dollar stablecoin (USDG) within the European Union, adhering to the new regulatory frameworks established for digital assets. In a press release dated July 1, the company announced that its stablecoin meets the criteria set forth by the EU’s Markets in Crypto-Assets (MiCA) Regulation and is regulated under the oversight of Finland’s Financial Supervisory Authority.
Expansion and Integration
Initially launched in late 2024, USDG is already available across major blockchain networks such as Ethereum (ETH), Solana (SOL), and Kraken’s Ink blockchain. Its recent rollout into the EU market significantly expands its reach, making it accessible to over 450 million consumers in 30 different countries. To align with the MiCA regulations, Paxos Issuance Europe has partnered with European banking institutions to manage the reserve assets underpinning USDG, while a version of the stablecoin issued in Singapore continues to be supervised by the Monetary Authority of Singapore.
As part of this expansion, USDG will be integrated into several platforms including Kraken, Gate, SwissBorg, Zodia Custody, Coinmetro, and others, promoting the stablecoin’s usage within the EU. Notably, USDG is a vital component of the Global Dollar Network, focused on facilitating increased adoption of stablecoin transactions in payments and financial services. The Network boasts notable participants like Mastercard, Kraken, Robinhood, and Anchorage Digital.
Market Demand and Future Prospects
This launch is timely, aligning with a burgeoning appetite for regulated digital currencies in Europe. Paxos has been actively establishing its international footprint and is recognized for issuing other stablecoins such as PayPal’s PYUSD, USDP, and PAX Gold (PAXG). The company has also fostered partnerships to expand its utility; for instance, in April, Paxos collaborated with Stripe to enable merchants to process payments in cryptocurrencies using PYUSD and USDG.
Furthermore, in recent announcements, Fiserv expressed intentions to utilize Paxos’ infrastructure to launch its own stablecoin, FIUSD, on Solana, while Mastercard stated that it would support USDG for instantaneous cross-border transactions via its Move network.
Regulatory Compliance and Stability
Paxos maintains that with regulatory frameworks now in place across both Europe and Asia, USDG remains fully redeemable for US dollars, ensuring stability and trust across different jurisdictions. With the MiCA compliance now achieved, Paxos is poised to position USDG as one of the select global stablecoins that both conform to stringent EU regulations and offer multi-blockchain interoperability.
