Latest news with #Paxos
Forbes
a day ago
- Business
- Forbes
The GENIUS Act Cements Stablecoins' Place In Cross-Border Payments
A digital representation of a US dollar stablecoin. Stablecoins are set to see a regulatory boost ... More with the passing of the GENIUS Act. Earlier this week, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed its final vote in the Senate, and now proceeds to the House where, if it is passed, it will move to the final steps to become law. The passing of the bill, which establishes a long-awaited regulatory framework for fiat-currency-pegged digital currencies in the US, looks increasingly likely, and comes amid a growing focus on stablecoins from the cross-border payments industry. While the industry has explored stablecoins before, this exploration has previously been very peripheral: few mainstream players have touched stablecoins directly, engaging through arms-length partners, if at all. That, however, is beginning to change. Over the past few years, stablecoins have become more prominent in mainstream fintechs. PayPal launched its own stablecoin PayPal USD (PYUSD) with issuer Paxos in August 2023, and in October 2024 used PYUSD to execute a business transaction for the first time. In February of this year, Stripe completed its acquisition of stablecoin infrastructure player Bridge, which in May launched USDB, its own infrastructure-focused stablecoin. Meanwhile, growing numbers of payments players have begun to add stablecoin support, with Worldpay partnering with BVNK to deliver stablecoin payouts and Shopify adding acceptance of leading stablecoin USDC for merchants via a partnership with Stripe and Coinbase. The passing of the GENIUS Act, however, would bring another level to this. Multiple traditional financial organizations have expressed interest in launching their own stablecoins if the bill passes, including Bank of America, Fifth Third Bank and US Bank, while there have also been reports of interest from retail majors including Amazon, Expedia and Walmart. While there are those that are quick to characterize stablecoins as a no-brainer replacement for every aspect of cross-border payments, the truth is more nuanced. Cross-border payments using stablecoins can represent an improvement over traditional correspondent banking in terms of speed and cost. Whilst it is not clear that it solves all use cases, there are a number where stablecoins can be seen to add real value. In parts of the world where local currencies are highly volatile, stablecoins are finding popularity as a means of being paid and holding value in US dollars. Meanwhile, cross-border payments involving emerging markets are also a rapidly growing use case, with many providers of stablecoin-based business-to-business payments reporting taking business from local banks whose cross-border infrastructure remains slow and expensive. Out-of-hours liquidity is also key, with increasing interest in stablecoins to plug time windows outside of standard US or international banking hours, which often act as significant constraints for fintechs catering to an international customer base. While early business adopters of stablecoins were largely those looking to interoperate between volatile cryptocurrencies and the US dollar without having to pay large on and offramping fees every time they wanted to move money out of a volatile digital currency, such applications are driving growing use among those without any crypto interest. If the GENIUS Act becomes law, it is likely that confidence in the use of stablecoins will grow within the financial sector, something we have already seen reflected in the share price of key companies. In the day following the bill's passing in the Senate, recent public market entrant Circle saw its share price rise by 34%, while crypto exchange Coinbase, which retains an interest in Circle's USDC stablecoin, rose by 16%. If the act proceeds into law, traditional players will increasingly feel able to make use of the technology, while applications and solutions are likely to proliferate further. Although adoption of stablecoins for cross-border payments has grown significantly, there is still very significant headroom to grow. My own company, FXC Intelligence, estimates that the global size of the non-wholesale cross-border payments market was $40tn in 2024, however stablecoins represent only a very small fraction of this: the market capitalization of all stablecoins has never topped its current peak of around $252bn. The GENIUS Act's passing through the Senate has already prompted a surge in the market cap of stablecoins, but its shift into law and the subsequent expansion of the industry will only increase this further, potentially taking a greater share of cross-border payments in the process.
Finextra
04-06-2025
- Business
- Finextra
Huma joins the Global Dollar Network
Huma has officially joined the Global Dollar Network (GDN) — a coalition of leading enterprises committed to accelerating the adoption of stablecoins through aligned incentives, regulatory clarity, and global utility. 0 Launched by Paxos and powered by Global Dollar (USDG), the network includes members such as Robinhood, Kraken, Anchorage, Nuvei, and Worldpay. USDG is a US dollar-backed stablecoin issued by Paxos Digital Singapore and is compliant with the Monetary Authority of Singapore's (MAS) upcoming stablecoin regulatory framework. Available on Solana, Ethereum, and other public blockchains approved by MAS, USDG supports fast, low-cost, and secure global money movement. Significantly, USDG's preferred blockchain is Solana—chosen for its unparalleled speed, efficiency, and scalability, making it ideally suited for powering real-time financial transactions. Currently, around $3.5 to $4 billion of daily stablecoin volume already occurs on Solana, highlighting its strong adoption and capacity for supporting global-scale financial operations. A Step Forward for PayFi Stablecoins have become a foundational layer of programmable finance—central to the future of PayFi and global liquidity—powering use cases from real-time settlement to cross-border payments. The Global Dollar Network builds on this momentum with a model designed to strengthen and scale the PayFi ecosystem. • Aligned incentives: Network revenue is shared with GDN partners who mint, transact, and hold USDG. • Regulatory confidence: USDG is designed to comply with MAS's forthcoming stablecoin framework, providing the trust institutions require. • Lower barriers to participation: Enterprises can tap into stablecoin benefits without launching their own asset. • Collaborative adoption: GDN fosters industry coordination to drive real-world stablecoin use cases across finance and commerce. Erbil Karaman, Co-Founder of Huma, said 'Stablecoins are ready to power global payments and fintechs, however single issuer stablecoins fail to create the network effect needed to accelerate adoption. That's why we are so excited to be joining GDN alongside many of our existing partners and bring the PayFi movement to the masses.' Huma's PayFi network has already facilitated over $4.5 billion in payment-backed transactions, addressing a global market exceeding $30 trillion annually. Stablecoins, such as USDG, have become essential financial infrastructure, processing over $35 trillion in transactions in 2024 alone, underscoring their critical role in the evolving financial landscape. Ronak Daya, Head of Product at Paxos, said 'Huma joins Global Dollar Network with a proven track record in delivering liquidity and credit solutions for global payments. Their infrastructure directly strengthens our network partners' ability to move money efficiently across borders. With significant stablecoin volume already on Solana, USDG is well positioned for adoption in remittance and money movement, an area in which Huma addresses critical challenges around liquidity and pre-funding.' Accelerating Always-On Financial Infrastructure As stablecoin adoption accelerates with regulatory clarity emerging with the GENIUS Act, Huma is positioned to capture the infrastructure opportunity ahead with this integration with Global Dollar Network.
Crypto Insight
03-06-2025
- Business
- Crypto Insight
Tether debuts omnichain gold stablecoin on TON
Tether announced a partnership with the TON Foundation to debut an omnichain version of its gold stablecoin XAUt on The Open Network, in an effort to expand the token across ecosystems. The new token, 'XAUt0,' was built on LayerZero's Omnichain Fungible Token standard, which allows tokens to be transferred through blockchains without wrapping or middlechains. XAUt, the token's non-omnichain version, is the largest gold stablecoin by market capitalization, with over $832 million, according to CoinGecko. It is closely followed by Paxos's Pax Gold, which holds a market cap of $811 million as of June 2. XAUt is available only on the Ethereum blockchain. Tether has more than 7.7 tons of physical gold backing the XAUT stablecoin, according to the company's Q1 2025 attestation report. Each XAUt token represents one troy ounce of the global asset, which is reportedly being stored in a Swiss vault. XAUt0 may mimic Tether's rollout of USDT0 (USDT0), a crosschain dollar-backed stablecoin deployed across Optimism's Superchain, an ecosystem that has at least eight blockchains. USDT0 is a bridged token of Tether's USDt, the company's dollar-backed stablecoin. Tether also deployed USDt onto the TON blockchain in April 2024. Gold rises backed by economic uncertainty Gold is considered a safe-haven asset and, in 2025, has experienced a steep appreciation in price due to economic uncertainty, particularly due to ongoing global trade wars. Gold's price was at $3,304 per ounce on May 30, up $2,327 from a year ago — a 29.5% jump in 12 months. In addition, Gold exchange-traded funds (ETFs) have experienced significant gains year-to-date, with the eight top funds by total assets experiencing increases of more than 25%. Gold ETFs are a popular way to trade the asset. Tether's omnichain gold token will compete with similar ETFs and other traditional gold investment instruments. Source:
Yahoo
30-05-2025
- Business
- Yahoo
Global Dollar Network Announces USDG Launch on Ink Blockchain from Kraken
SINGAPORE, May 30, 2025 /PRNewswire/ -- Global Dollar Network (GDN) is proud to announce that Global Dollar (USDG) is now available on the Ink Blockchain. This significant launch marks a key milestone for USDG, as availability on Ink is bringing the next generation of stablecoins to a vibrant and innovative platform. The availability of USDG on Ink provides users and developers a stable asset for transactions, liquidity provision and interactions with a wide array of DeFi applications, all while leveraging USDG's inherent stability and utility. Issued by Paxos, USDG was built with distinct features to serve demanding onchain environments like Ink: Fully backed 1:1: Global Dollar (USDG) is a single-currency stablecoin pegged to the US dollar. USDG is fully redeemable from Paxos on a one-to-one basis for US dollars. Trusted and transparent: Paxos publishes monthly reserve reports for all Paxos-issued stablecoins, including USDG, to ensure full transparency and reliability of financial data. USDG powers Global Dollar Network: GDN is the world's fastest-growing stablecoin network with unmatched economic upside. Powerful integration: USDG is designed for deep integration, offering native performance on Ink while maintaining its Ethereum compatibility for broader accessibility. USDG is also available on Solana. "The launch of USDG on Ink furthers the mission of Global Dollar Network and benefits the stablecoin ecosystem at large," said Sergio Mello, Head of Stablecoins at Anchorage Digital on behalf of Global Dollar Network. "By integrating USDG with Ink, we are empowering users to confidently navigate and participate in the exciting opportunities within DeFi, backed by the reliability of USDG and the trusted environment of Kraken." "Stablecoins are evolving fast, and it's crucial for ecosystems to keep pace with demand for emerging options that are growing rapidly," said Andrew Koller, Founder of Ink. "USDG on Ink expands the freedom of choice and flexibility for anyone to move value with confidence." For more information about Global Dollar Network and how to join, visit About Global Dollar Network Global Dollar Network (GDN) is an open, distributed network of leading enterprises working to accelerate stablecoin adoption worldwide. Powered by Global Dollar (USDG), a US dollar-backed stablecoin issued by Paxos Digital Singapore, GDN offers a transparent and equitable economic model that rewards partners for their contributions. Founded by Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood, GDN is revolutionizing the financial system by making it more accessible and efficient for all. CONTACT: press@ View original content to download multimedia: SOURCE Global Dollar Network Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Global Dollar's USDG Eyes Hundreds of Partners Attracted by Yield, Sees 'Big Names' From TradFi
It's early days for USDG, a stablecoin that debuted in November, but a thousand firms could join the Global Dollar group that helps popularize the token in return for a share of the yield earned on reserve assets, according to crypto exchange Kraken, one of the founding partners. USDG, whose other backers include trading platform Robinhood (HOOD), stablecoin issuer Paxos, crypto investor Galaxy Digital and crypto bank Anchorage Digital, recently welcomed 19 new joiners, many of them crypto native firms. Banks and large traditional finance firms are also lining up, Kraken's consumer business lead Mark Greenberg said. 'There are 25-plus partners now, and I hope in another month, we'll be announcing the next 25, and then the next 25. So from 25 to 50 to 1,000," Greenberg said in an interview. "I'm very excited about some of the partners coming up in traditional finance and in crypto — big names on both sides. We're talking to a lot of banks and I think a few will be coming online soon.' The changing dollar stablecoin landscape has been dominated by two big players: Tether's USDT, far and away the largest at a market cap of over $150 billion, and Circle's USDC which commands a circulation of just over $60 billion. USDG has just $276 million, making it the 24th-largest stablecoin in a CoinGecko ranking. Paxos, the New York-regulated stablecoin specialist underpinning USDG, originally offered a contender to USDC and USDT in the form of tie-up with exchange giant Binance, but the partnership was discontinued for regulatory reasons. Greenberg said Global Dollar is a 'true consortium,' and Paxos is a distribution partner, albeit with some particular administrative duties. 'We are building a decentralized community around the stablecoin, with yield that goes back to everybody,' Greenberg said. 'Some of us are founding partners, and if we were a property company, Paxos would be the property management. They make sure that the licenses are in place and that the treasuries are handled properly and that the minting is done. But it's on all of us to be equal partners in making the Global Dollar network a success.' Driving the consortium's growth is the offer of yield, which both incentivizes firms to join up, and also reimagines stablecoins as part of the wider financial system, Greenberg said. It's also how USDG plans to challenge the dominance of Tether and Circle. 'I believe in decentralization over centralization. I believe in giving the value back to users, and USDG is doing that in a way that you can't with Circle or Tether today,' said Greenberg. 'Tether and Circle make a lot of money. In banking you give your deposits and they do things with it, but you get almost nothing back. But stablecoins shouldn't be like that.' Kraken moves a lot of money around the world and naturally the firm has been using USDG, eating its own dog food, in business innovation parlance. 'We use global dollars and the USDG all over the world,' Greenberg said. 'You send a wire and it can take four or five days and get stuck in some random bank along the way. That's already changing really fast. And you see players like Visa and MasterCard and others come to the table and stablecoins start to play that role in a much bigger way.' Kraken's clients are also taking advantage of earning up to 4.1% on U.S. dollars in every country in the world by putting their money in USDG, Greenberg added. 'If you're in the U.S., maybe that's not that exciting, because there are other ways to do that. But if you're in Argentina, or if you're in Canada, where there are no U.S. dollar accounts and earning 4.1% is unheard of, it's a very cool opportunity to make that happen.' UPDATE (May 22, 16:22 UTC): Rewrites headline, first paragraph to make clear Global Dollar is the name of the consortium, USDG the name of the stablecoin.
