Paxos unleashes USDG stablecoin in EU as 450m users join Global Dollar Network

The Global Dollar Network (GDN), a major alliance of crypto industry leaders, has made its European debut with the launch of USDG, a regulated dollar-pegged stablecoin issued by Paxos. Backed by major players like Robinhood, Kraken, and Galaxy Digital, the move signals a strategic push into the EU’s rapidly evolving crypto market.

USDG is now available for trading on platforms such as Kraken, Gate, and CoinsPaid, offering 450 million EU residents access to a fully compliant dollar stablecoin under the EU’s Markets in Crypto-Assets (MiCA) framework.

A regulated dollar stablecoin for Europe

Paxos, through its Finnish subsidiary Paxos Issuance Europe OY, has structured USDG to meet MiCA’s strict requirements, including full 1:1 dollar backing and regular audits. The stablecoin’s reserves will be partially held in European banks, ensuring transparency and regulatory compliance.

Walter Hessert, Paxos’ head of strategy, emphasized the growing demand for dollar-linked stablecoins in Europe, despite the region’s stringent crypto regulations. “USDG provides a trusted, regulated alternative for users who need dollar exposure without relying on unregulated options,” he said.

The Global Dollar Network, launched in November 2024, includes heavyweight partners like Anchorage Digital, Nuvei, and Bullish, all working to drive stablecoin adoption. With USDG now live in the EU, the alliance is positioning itself as a key competitor to dominant stablecoins like Tether’s USDT and Circle’s USDC.

Competing in a crowded stablecoin market

The stablecoin sector remains highly concentrated, with USDT and USDC controlling nearly 90% of the $160 billion market, according to The Block’s data. USDG, with a current market cap of $322 million, is still a small player but benefits from the Global Dollar Network’s institutional backing.

Paxos already issues other dollar-backed stablecoins, including USDP, PayPal’s PYUSD, and the yield-bearing USDL. The expansion of USDG into Europe strengthens the Global Dollar Network’s footprint, offering users more choices in a market increasingly shaped by regulation.

MiCA’s impact on stablecoin adoption

The EU’s MiCA framework, which came into full effect earlier this year, has pushed crypto firms to adopt stricter compliance measures. Circle’s USDC was the first stablecoin to secure a MiCA license, but Paxos is betting that USDG’s strong institutional support and seamless integration with major exchanges will help it gain traction.

With the Global Dollar Network now operational in Europe, the battle for stablecoin dominance is heating up. The alliance’s ability to leverage partnerships with top-tier exchanges and financial institutions could prove decisive in winning over EU users.

The future of USDG and the Global Dollar Network

As regulatory clarity improves, stablecoins are becoming a cornerstone of the crypto economy. The Global Dollar Network’s expansion into Europe marks a significant milestone, offering a regulated, transparent alternative in a market hungry for dollar liquidity.

With backing from Robinhood, Kraken, and Galaxy, USDG is well-positioned to carve out a niche. If adoption grows, the Global Dollar Network could emerge as a major force in the stablecoin space, challenging the dominance of incumbents.

For now, all eyes are on how quickly EU users embrace USDG—and whether the Global Dollar Network can deliver on its promise of a more accessible, compliant dollar stablecoin