On Monday, a consortium of financial technology and cryptocurrency companies including Robinhood, Kraken and Galaxy Digital introduced a joint Stablecoin fixed with the US dollar.
The newly established global dollar network is intended to accelerate the use of global stable bacteria and promote assets that provide partners with proportional economic benefits, the companies said.
Why it matters
Stablecoins are digital tokens designed to maintain constant value. They are backed by traditional currencies such as the US dollar or the euro.
Cryptocurrencies like Bitcoin have soared this year due to forecasts of lower U.S. interest rates and the introduction of new crypto exchange-traded products, so more and more companies are dedicated to promoting stable companies.
Stable coins are often used to convert crypto tokens into traditional currencies because they are protected from wild price fluctuations in other cryptocurrencies.
The Global Dollar Network is based on a new Stablecoin called USDG, which will be released from Singapore by Crypto Platform Paxos. The token will be managed by a committee made of representatives of network partners, which also includes Anchorage Digital, Bullish and Nuvei.
According to Coingecko, USDG will face a daunting task along the centralized market, with two of the largest players (Tether and USD Coin) accounting for nearly 90% of the total market capitalization.
The shift from the companies involved is that cryptocurrency players are largely expected to heat up digital assets if U.S. officials win the presidential election on Tuesday.
“The Global Dollar Network will return almost all rewards to participants and be available for anyone to join. It aims to inspire global Stablecoin usage and accelerate the widespread adoption of the technology by society,” said Charles Cascarilla, CEO of Paxos.
©Thomson Reuters 2024
(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
