In a bustling move to challenge the titans of the stablecoin world, USDG, a fledgling stablecoin introduced by the Global Dollar consortium last November, is gaining traction with potential partners. This ambitious initiative, spearheaded by the crypto exchange Kraken, is courting traditional financial giants and crypto-native firms alike, promising a compelling yield on reserve assets as a sweetener.
A Growing Consortium
From the get-go, USDG has been about collaboration. With Kraken, Robinhood, Paxos, Galaxy Digital, and Anchorage Digital already on board, the consortium recently welcomed 19 new members, many of whom are deeply entrenched in the crypto space. As Mark Greenberg, Kraken’s consumer business lead, enthused, “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.”
The enthusiasm isn’t just limited to crypto natives. Traditional finance players are also showing interest, with banks reportedly in talks to come on board. According to Greenberg, some “big names on both sides” of the financial spectrum are in discussions, hinting at a potentially tectonic shift in stablecoin adoption. This follows a pattern of institutional interest, as seen in Visa and Baanx’s launch of USDC stablecoin payment cards.
A New Contender in the Stablecoin Arena
While USDG’s current market cap of $276 million pales in comparison to the likes of Tether’s USDT and Circle’s USDC, which dominate the space with market caps of over $150 billion and $60 billion, respectively, the Global Dollar consortium is betting on its unique approach to yield distribution to spur growth. “We are building a decentralized community around the stablecoin, with yield that goes back to everybody,” Greenberg explained.
The consortium is marketed as a “true consortium,” with Paxos serving as a key distribution partner. Despite Paxos’s administrative role, the Global Dollar network is positioned as a collective effort, with all partners sharing responsibilities to ensure its success.
The Promise of Yield
Driving the consortium’s appeal is its promise of yield—a lure for both potential partners and users. Greenberg sees this as a game-changer, challenging the revenue models 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,” he stated. This innovative approach comes amid other significant moves in the stablecoin space, such as Ripple’s reported offer to acquire Circle for $4B-$5B.
Kraken, a heavyweight in crypto transactions, is already leveraging USDG globally. Greenberg highlighted how the stablecoin is revolutionizing cross-border transactions, reducing the days-long wait typical of traditional wire transfers. “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,” he remarked.
Global Implications
The potential of earning up to 4.1% on U.S. dollars through USDG is particularly enticing for Kraken’s international clients, especially in countries like Argentina and Canada, where U.S. dollar accounts are scarce. “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,” Greenberg noted.
As USDG continues to gain momentum, the question remains whether this newcomer can sustain its growth and challenge the established giants in the stablecoin market. With traditional finance and crypto worlds converging, the landscape appears ripe for disruption. The coming months will reveal whether USDG’s innovative approach to yield and community can carve out a significant niche in this rapidly evolving space.
Source
This article is based on: Global Dollar’s USDG Eyes Hundreds of Partners Attracted by Yield, Sees ‘Big Names’ From TradFi
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
