Leading financial technology and cryptocurrency companies such as Robinhood, Kraken, and Galaxy Digital have announced the Global Dollar Network (GDN), a new stablecoin network that can be used worldwide.
This announced new network will operate on a common stablecoin pegged to the dollar, which aims to increase liquidity in the market and accelerate the global adoption of these assets.
Why are stablecoins important?
Stablecoins are cryptocurrencies whose value is usually pegged to currencies such as dollars or euros, developed to protect against volatile price fluctuations of digital tokens. Recently, the cryptocurrency market has attracted attention with the appreciation of assets such as Bitcoin, but stablecoins are preferred due to their price stability, especially in payment transactions and transfers.
With the increasing interest in cryptocurrencies, it has become a remarkable trend for companies to invest in stablecoin projects in order to make such assets more widely used around the world.
How will the Global Dollar Network be controlled?
At the core of the Global Dollar Network is a new stablecoin called USDG. This token, which will be issued by Singapore-based crypto platform Paxos, is being developed in collaboration with other important platforms affiliated with GDN.
The management of the network will be provided by a committee consisting of representatives of partners such as Anchorage Digital, Bullish and Nuvei, leading brands in the crypto industry.
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