TL;DR
- Paxos launched USDG in the European Union after securing regulatory approval and meeting MiCA requirements. The stablecoin is backed by multiple banks.
- USDG operates on Ethereum, Solana, and Ink, and is now available on Kraken, Gate, Coinmetro, and SwissBorg, under the supervision of authorities in Finland and Singapore.
- It’s part of the Global Dollar Network, an infrastructure initiative led by Paxos, Kraken, Robinhood, and Mastercard to develop globally regulated stablecoins.
Paxos officially launched its stablecoin, Global Dollar (USDG), in the European Union after receiving authorization from local regulators and complying with MiCA, the legal framework governing digital assets within the European bloc.
USDG will be overseen by the Finnish Financial Supervisory Authority and aligned with the Monetary Authority of Singapore’s regulations. Its entry into the European market is taking shape through exchanges such as Kraken, Gate, Coinmetro, and SwissBorg, and it operates on the Ethereum, Solana, and Ink blockchains.
The stablecoin is part of an infrastructure network called Global Dollar Network, an initiative led by Paxos alongside more than 20 financial and fintech companies. Its partners include Kraken, Robinhood, Mastercard, and Anchorage Digital.
The goal is to build a regulated, operational foundation for internationally used stablecoins. Mastercard and Fiserv recently joined the project to help expand its reach and integrate it with traditional payment services.
Paxos Moves into the European Market and Prepares for the Stablecoin Boom
To comply with MiCA, Paxos issues USDG in Europe through a Finland-based subsidiary, ensuring its cash reserves fully back the total amount of issued tokens, held in European banks. The company guarantees one-to-one redemption at any time, regardless of jurisdiction, in line with the regulatory standards of both the European Union and Singapore.
Since its initial launch in November 2024, USDG has remained aligned with Singapore’s upcoming stablecoin framework. This positioning allows Paxos to operate with institutional backing in two major jurisdictions for the crypto industry while developing a stablecoin designed for cross-border transactions, digital payments, and decentralized applications.
According to recent data, the stablecoin market capitalization surpassed $250 billion in June 2025, driven in large part by new yield-bearing products. Coinbase reported that stablecoin use tripled over the past twelve months, both for retail users and corporate solutions
