Global Dollar usdg
What is Global Dollar?
Global Dollar (USDG) is a single-currency stablecoin designed to track the U.S. dollar. It is issued by Paxos Digital Singapore Pte. Ltd. (PDS), a Major Payments Institution supervised by the Monetary Authority of Singapore (MAS). USDG is intended as programmable dollar infrastructure for payments, settlement, treasury operations, and smart-contract applications. Unlike a volatile cryptoasset, its stated design target is a one-dollar value: Paxos says USDG can be purchased from and fully redeemed with Paxos one-to-one for U.S. dollars. USDG launched in November 2024 and was initially available on Ethereum.
What problem does Global Dollar solve?
Cross-border payments and digital-asset settlement can be slow, fragmented, expensive, and dependent on intermediaries. Dollar stablecoins provide a transferable digital representation of USD that can move on public blockchains and plug into wallets, exchanges, payment systems, and smart contracts. USDG focuses on a regulated, institution-oriented stablecoin with segregated reserve assets, direct minting/redemption through Paxos, and published reserve transparency. Its network model also seeks to give distribution partners economic incentives, but those incentives do not make USDG a yield-bearing token or remove stablecoin, issuer, custody, liquidity, blockchain, regulatory, or depeg risks.
How does Global Dollar work?
Paxos issues USDG on supported blockchains, initially Ethereum, through a token smart contract. Eligible customers acquire USDG from Paxos by funding the minting process; when they redeem, Paxos burns or removes the corresponding tokens and pays U.S. dollars subject to its onboarding, compliance, and terms requirements. Paxos states that cash and cash-equivalent reserve assets are held in segregated accounts and that USDG is redeemable at 1 USDG for 1 USD. Its stated reserve policy permits high-quality liquid assets including U.S.-dollar deposits, short-duration U.S. government securities, and other cash equivalents. Paxos publishes monthly reserve-composition reports and independent-attestation reports. Ethereum users pay network gas fees, while secondary-market prices can temporarily differ from one dollar because of liquidity, market conditions, fees, or redemption access.
Key facts
- Ticker: USDG (the Global Dollar token; do not confuse it with GUSD, the separate Gemini Dollar)
- Launch: introduced by Paxos on October 31/November 1, 2024; initially available on Ethereum
- Issuer: Paxos Digital Singapore Pte. Ltd. (PDS), a Major Payments Institution supervised by the Monetary Authority of Singapore (MAS)
- Peg and redemption: Paxos states USDG is fully redeemable one-to-one for U.S. dollars (1 USDG = 1 USD), subject to applicable terms and compliance requirements
- Backing: Paxos says USDG is backed by high-quality liquid assets, including U.S.-dollar deposits, short-duration U.S. government securities, and other cash equivalents; reserves are held in segregated accounts
- Transparency: Paxos publishes monthly USDG reserve-composition reports and independent third-party attestation reports
- NYDFS distinction: Paxos is licensed for virtual-currency business activity by NYDFS, but USDG is issued by its Singapore entity under MAS supervision; NYDFS oversight should not be presented as USDG's issuing-regulator approval
- Initial network: Ethereum; token contract address published by Paxos is 0xe343167631d89B6Ffc58B88d6b7fB0228795491D
- Use cases: payments, settlements, treasury, liquidity, and interoperable open-source smart contracts
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Frequently asked questions
What is Global Dollar (USDG)?
Global Dollar is Paxos's U.S.-dollar-pegged stablecoin. The token is USDG, and Paxos positions it as programmable dollar infrastructure for payments, settlement, treasury, and smart-contract use.
Who issues USDG?
USDG is issued by Paxos Digital Singapore Pte. Ltd., a Major Payments Institution supervised by Singapore's Monetary Authority of Singapore. Paxos's U.S. affiliate Paxos Trust Company issues other assets such as USDP, but it is not the named issuer of USDG.
Is USDG backed by U.S. dollars?
Paxos states that USDG is backed by high-quality liquid assets, including U.S.-dollar deposits, short-duration U.S. government securities, and other cash equivalents. Paxos says the assets are held in segregated accounts and that USDG is fully redeemable one-to-one for U.S. dollars.
Is USDG regulated by NYDFS?
Not as its issuing entity: USDG is issued by Paxos Digital Singapore under MAS supervision. Paxos as a group is licensed for virtual-currency business activity by the New York Department of Financial Services, and NYDFS regulates certain Paxos entities and products.
How can USDG maintain its dollar peg?
The mechanism combines a one-to-one issuance/redemption policy with reserve assets intended to match outstanding tokens. Authorized customers can mint against dollars and redeem USDG for dollars through Paxos, while market makers and exchanges provide secondary-market liquidity.
What blockchain does USDG use?
Paxos launched USDG on Ethereum and publishes an Ethereum token contract. Availability on additional networks can change, so users should verify the contract address and supported network from current Paxos documentation before transferring tokens.
Does holding USDG earn interest?
USDG is designed as a dollar stablecoin, not as a deposit account or automatically yield-bearing token. The Global Dollar Network may share economics with eligible partners, but that partner program is distinct from a guaranteed return to every USDG holder.
What is the difference between USDG and GUSD?
USDG is Global Dollar, issued by Paxos Digital Singapore. GUSD is a separate stablecoin associated with Gemini. Check the ticker, issuer, network, and verified contract address before sending funds.
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