The global marketplace of stablecoins is moving quickly as new companies try to get a piece of the market in a blockchain ecosystem that isn’t very organized. LayerZero is the interoperable protocol that is enabling this change for the next generation of stablecoins that wish to exist across multiple networks. The Global Dollar (USDG), which is a regulated stablecoin backed by heavy hitters of the crypto industry, is using LayerZero’s infrastructure to distribute across multi-chain.
The Global Dollar Network Takes Shape
Global Dollar, launched on November 1, 2024, is a strategic partnership involving Paxos, Kraken, Robinhood, Anchorage Digital, Bullish, Galaxy Digital, and Nuvei. What sets USDG apart from well-known trends such as USDT by Tether and USDC by Circle is its unique revenue-sharing model and positioning in terms of its regulations.
Issued by Paxos Digital Singapore under the supervision of the Monetary Authority of Singapore (MAS), USDG operates as a Major Payments Institution. The U.S dollar reserves, short-term government securities, and high-quality liquid assets are used to back the stablecoin and ensure that the stablecoin maintains its peg ratio of 1:1. The real significance is the economic structure: 97% of the reserve revenue is spent on network partners who actively promote adoption and liquidity.
LayerZero’s Omnichain Technology Levels Barriers
LayerZero inter-connects more than 130 blockchain networks, allowing apps to be able to run across many blockchain chains simultaneously. As of May 2025, the LayerZero supported infrastructure provided support to approximately 61.2% of the total number of issued stablecoins, which is $150 billion. The protocol for cross-chain transfers is using a burn and mint model that reduces the price impact and slippage.
The Omnichain Fungible Token (OFT) Standard provides unparalleled flexibility in security configuration. Ondo Finance’s integration is an excellent example and is based on Multi-Messaging Aggregation and custom implementation of Decentralized Verifier Networks. Liquidity fragmentation across blockchains has been a major challenge to the development of stablecoins. In June 2024, the total market capitalization of the stablecoins decreased by 53% to $245 billion in May 2025. This is implemented by LayerZero by allowing native cross-chain transfers that can occur, which are able to move seamlessly and have a single source.
Innovation Compliance with Regulations
The key factor that makes USDG unique is that it is important to adhere to the regulations. The stablecoin was issued by Paxos Issuance Europe with the FIN FSA of Finland monitoring it, which implies that it is fully compatible with the Markets in Crypto-Assets (MiCA) rules of the EU. This two-pronged regulatory approval will enable USDG to access both the Asian and the European markets with regulatory confidence, which most of its competitors do not possess.
DBS Bank, which has the most assets in Southeast Asia, is USDG’s key banking partner for managing cash and holding reserves. Another aspect of the stablecoin industry is that through teaming, both regulatory compliance and technical innovation are now advancing in harmony. The market is highly concentrated with Tether controlling 66.8% of the total market capitalization of stablecoins and the USDC of Circle holding approximately 20.5% of the total. However, the number of major stablecoins issuers increased by 90% in the past 12 months: since 29 June 2024 to 55 May 2025.
Conclusion
The integration of LayerZero’s omnichain infrastructure is a strategic move for the Global Dollar Network’s ambitions. USDG has the right opportunity to take advantage of market share in a market where technical infrastructure is becoming the source of competitive advantage. LayerZero’s interoperability technology is increasingly taking a larger role in the market of stablecoins as it becomes larger. With it combined with the innovative economic model of USDG, it could potentially establish the norm of the next generation of digitized currencies that are regulated.
