Prominent cryptocurrency-focused firms like Kraken, Galaxy Digital, and Robinhood have joined forces to back the Global Dollar, a regulated yield-bearing stablecoin developed by stablecoin issuer Paxos.

According to a Nov. 5 announcement, Paxos, in partnership with Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei, and Robinhood, has launched the Global Dollar Network—a consortium backing USDG, a newly launched dollar-backed stablecoin issued in Singapore.

Launched on Oct. 31, USDG is backed by reserves comprising liquid assets like U.S. dollar deposits, short-duration U.S. Government securities, and other cash equivalents. The stablecoin is compliant with Singapore’s upcoming stablecoin framework and is regulated by the Monetary Authority of Singapore.

Developed by Paxos Digital Singapore, Paxo’s local arm, the stablecoin is currently limited to the Ethereum blockchain but has plans to expand to other networks and expand globally as Stablecoin regulations evolve. 

As its custody partner, Paxos tapped Singapore’s largest bank DBS to manage the reserve assets, which ensures the stablecoin is redeemable for fiat.

According to Kraken co-CEO Arjun Sethi, “the lack of competition” has prevented the stablecoin industry from reaching its full potential, which USDG will help correct by offering a more equitable model to attract mainstream participants and “accelerate new use cases.”

The consortium will support the global adoption of the stablecoin and “incentivize the development of both crypto and broader financial solutions involving USDG,” the announcement notes. 

It plans to onboard new members across sectors, including custodians, exchanges, payment fintechs, merchants, protocols, card networks, banks, and investment platforms, though it’s currently in an invite-only phase.

Participants in the consortium will earn rewards generated from the yield on USDG’s reserve assets, based on their contributions to expanding the network’s utility and connectivity.

USDG is currently available to users on Anchorage Digital, Galaxy Digital, Kraken, and Paxos, with plans to expand across all distribution partners soon.

As Paxos’s second localized stablecoin offering, USDG seeks to compete with established players like Tether and Circle. The former currently leads the stablecoin market by a wide margin in terms of both volume and market cap.

The competition is expected to heat up further with Ripple, a prominent player in the blockchain payments sector, en route to deploying RLUSD, a dollar-pegged stablecoin backed with U.S. dollar deposits, U.S. government bonds, and cash equivalents.

Further, multinational payments firm Stripe is also eyeing an entry into the market with its recent acquisition of stablecoin provider Bridge.