It is early days before the Global Dollar (USDG), a stablecoin that debuted in November, but a thousand companies could join the group that helps token in exchange for part of the proceeds that earned on reserve baths, according to Crypto Exchange Kraken, one of the founder.
USDG, whose other backers are trading platform Robinhood (Hood), Stablecoin -Emittent Paxos, Crypto Investor Galaxy Digital and Crypto Bank Anchorage Digital, recently welcomed 19 new shooter, many of them crypto native firms. Banks and large traditional financing companies are also in line, said Kraken’s Consumer Business Lead Mark Greenberg.
“There are now 25-plus partners, and I hope that in another month we will announce the next 25 and then the next 25. So from 25 to 50 to 1,000,” Greenberg said in an interview. “I am very enthusiastic about some of the partners who come in traditional finances and in crypto – big names on both sides. We talk to many banks and I think a few will come soon.”
The changing dollar Stablecoin landscape is dominated by two major players: Tether’s USDT, by far the largest on a market capitalization of more than $ 150 billion, and Circle’s USDC that controls a circulation of just over $ 60 billion. USDG has only $ 276 million, making it the 24th largest stablecoin in a ranking from Coetecko.
Paxos, the New York-regulated Stablecoin specialist who is based on USDG, originally offered a competition to USDC and USDT in the form of Tie-Up with exchange giant Binance, but the partnership was stopped for regulatory reasons.
Greenberg pointed to USDG is a ‘real consortium’, and Paxos is a distribution partner, albeit with some specific administrative tasks.
“We are building a decentralized community around the Stablecoin, with proceeds that goes back to everyone,” said Greenberg. “Some of us are incorporation partners, and if we were a real estate company, Paxos would be the immovable management. They ensure that the licenses are present and that the treasuries are treated correctly and that the mining is done. But it is all to be the same partners in making the Global Dollar Network a success.”
Stimulating the growth of the consortium is the supply of revenue that both companies encourage to make up, and also the Stablecoins again presented as part of the broader financial system, Greenberg said. It is also how USDG is planning to challenge the dominance of Tether and Circle.
“I believe in decentralization about centralization. I believe that I return to users in the value, and USDG does that in a way that you cannot do with Circle of Tether today,” Greenberg said. “Tether and Circle earn a lot of money. In banking you give your deposits and they do things with it, but you get almost nothing back. But Stablecoins should not be the case.”
Kraken moves a lot of money around the world and of course the company used USDG and eats its own dog food, in business innovation.
“We use global dollars and the USDG around the world,” said Greenberg. “You send a thread and it can take four or five days and get stuck on the way in any couch. That changes very quickly. And you see players such as Visa and Mastercard and others coming to the table and Stablecoins start playing that role in a much larger way.”
Kraken’s customers also benefit from earning a maximum of 4.1% on American dollars in every country in the world by placing their money in USDG, Greenberg added.
“If you are in the US, that may not be so exciting, because there are other ways to do that. But if you are in Argentina, or if you are in Canada, where there are no American dollar accounts and 4.1% earn, it is a very cool chance to make that happen.”
