The Global Dollar Network, an open network aiming to promote the adoption of stablecoins globally, today announced the launch of its stablecoin, popularly known as Global Dollar (USDG) stablecoin.
Why Solana?
The network further disclosed that USDG is now available on the Solana blockchain, making the new stablecoin more affordable and efficient to use. The availability of USDG on Solana gives users numerous blockchain options, allowing for greater control and flexibility.
The Solana blockchain is recognized for handling huge quantities of transactions at rapid speed with a highly affordable approach, offering great advantages for business applications.
Metrics according to crypto analyst Artemis show that Solana is the most utilized blockchain for stablecoin transmissions. Solana is also ranked as the major blockchain for processing tokenized transactions. That is the reason the Global Dollar Network ended up picking Solana as a perfect fit for USDG stablecoin, as it is the most utilized blockchain for payment settlements.
Kraken and Anchorage Digital are the first two platforms to buy USDG, enabling a simplified fiat-to-crypto experience for retail investors and businesses.
USDG is issued by Paxos Digital Singapore, which is regulated by the MAS (Monetary Authority of Singapore). Reserves for USDG are fully backed by US dollar deposits, short-term US government bonds, and other similar cash equivalents. This ensures the stablecoin maintains its 1:1 peg to the US dollar. Consumers can buy or sell USDG at a rate of $1.00 per USD.
The rise of stablecoins
For years, cryptocurrency has had its enthusiasts and investors. However, it was disregarded by traditional financial institutions and the sector at large. But things began to change after stablecoins emerged as a link between traditional finance and the virtual currency landscape. While virtual currencies are known for their volatility, stablecoins bring stability to the market.
The launch of USDG as well as the growth of other stablecoins is evidence that the future of stablecoins as a form of payment is still expanding. As cryptocurrencies gain broader adoption, acceptance of stablecoins would rise and possibly rival debit and credit cards.
Multiple retailers, including GameStop, Whole Foods, Chipotle, Overstock, and many others nowadays accept stablecoins for their business activities. Also, the rising adoption of blockchain technology and stablecoin experiments within financial services and payments is an indication of strong interest among traditional financial institutions.
