Global Dollar (USDG): Paxos’s Dollar Coin Under Singapore Rules
The stablecoin of a network that shares reserve income
USDG is a dollar stablecoin that the US blockchain firm Paxos launched in November 2024, issued by an entity supervised by the Monetary Authority of Singapore (MAS). Its hallmark is the Global Dollar Network, in which companies that distribute the coin share income from its reserves.
1. Who issues it
The issuer is Paxos Digital Singapore. Paxos has issued the gold token PAXG, the dollar coin USDP and PayPal’s PYUSD, and until 2023 it issued BUSD with Binance. USDG is presented as designed to meet the stablecoin framework of MAS.
Each USDG is designed to be redeemable for one dollar, backed by reserves held separately in cash and cash equivalents such as short-term US Treasury bills, with regular reports on their make-up. On the Crypto Nation map, USDG stands in Solana City, because Solana is the first chain CoinGecko lists for it.
2. Minting, redemption and shared income
Institutional customers send dollars to Paxos to mint USDG and return USDG to redeem dollars. Once minted, it moves freely between wallets as a token. Because a regulated issuer manages it, tokens at a given address can be frozen, for example at a law-enforcement request.
Its defining feature is the Global Dollar Network (GDN): reserve income is shared with partner companies that distribute or hold USDG. Founding partners included Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish and Nuvei. Instead of the issuer keeping most of the income, the firms that spread the coin get a share.
3. Where it is used
USDG is issued on Solana and Ethereum as well as Ink (Kraken’s Ethereum L2), OKX’s X Layer, Mantle, Arbitrum and other chains. It serves as a trading pair on exchanges, for transfers and payments, as a DeFi deposit asset and as a dollar balance inside partners’ apps.
More payment and fintech firms joined after launch, and in 2025 Paxos began issuing USDG in the EU under its crypto-asset rules (MiCA) through a European entity. In December 2025 Paxos won conditional approval from the US Office of the Comptroller of the Currency (OCC) to convert its state trust company into a national trust bank. With the US stablecoin law, the GENIUS Act, signed in July 2025, the place of regulated dollar coins is becoming clearer.
4. Things to know
USDG’s stability rests on Paxos, the banks and custodians holding the reserves, and regulatory supervision. A banking crisis, delayed redemptions or rule changes could shake the peg, and the issuer’s power to freeze addresses is a drawback for those who value censorship resistance.
The issuer’s record is worth knowing too. In 2023 Paxos stopped minting BUSD on the order of New York’s financial regulator, and in October 2025 it mistakenly minted an enormous amount of PYUSD and burned it shortly afterwards. The income-sharing model also depends on interest rates: when rates fall, partners receive less.
Written from information public up to October 2026. It does not recommend or rate any coin and is not investment advice. If something is wrong, please tell us through the contact page.