Global Dollar USDG Targets 1,000 Partners Offering Yield on Reserves
USDG, a new stablecoin launched in November, aims to compete with established players like Tether's USDT and Circle's USDC. It currently ranks as the 24th largest stablecoin with a market cap of $276 million.
Key points include:
- USDG is backed by firms such as Kraken, Robinhood, Paxos, Galaxy Digital, and Anchorage Digital.
- The consortium behind USDG has over 25 partners and plans to expand to 1,000, with both crypto and traditional finance firms joining.
- USDG offers yield on reserve assets to incentivize partnerships and aims to integrate into the broader financial system.
- Kraken emphasizes decentralization and user value, contrasting with the profit models of Tether and Circle.
- Clients can earn up to 4.1% on U.S. dollars held in USDG, particularly beneficial in countries without U.S. dollar accounts.
Kraken uses USDG for global transactions, highlighting its efficiency compared to traditional banking methods.