On July 1, 2024, Paxos officially launched the USDG stablecoin for users in the European Union, meeting the demand for US dollar stablecoins compliant with European regulations.
MAIN CONTENT
USDG is a stablecoin pegged to the US dollar issued by Paxos, compliant with EU financial regulations, and supervised by the Finnish Financial Supervisory Authority.
The asset reserve fund is held at European banks with a commitment to 1:1 convertibility according to MiCA standards.
USDG can be traded on many major exchanges such as Kraken, Gate, and also supports the Ethereum, Ink, and Solana blockchains.
What is USDG and why is it considered the standard stablecoin in the EU?
USDG is a stablecoin pegged to the US dollar, issued by Paxos through the legal entity Paxos Issuance Europe OY, under strict supervision of the Finnish financial authority, ensuring transparency and safety in accordance with EU regulations.
Compliance with the EU's legal framework for managing cryptocurrency assets (MiCA) helps USDG become a safe choice compatible with the European cryptocurrency market. Paxos maintains cash reserves at European banks to commit to a 1:1 convertibility, thus increasing reliability with users and financial institutions.
Accessing the EU market with standardized stablecoins makes it easier for users to access the US dollar on a transparent and reliable digital platform.
Walter Hessert, Head of Strategy at Paxos, 1/7/2024
What are the standout features of USDG in terms of guarantees and trading?
USDG strictly complies with the reserve and auditing requirements of MiCA, with all cash held at European banks, ensuring quick 1:1 convertibility of the stablecoin.
This stablecoin is also listed and traded on many major exchanges including Kraken, Gate, along with the Custody wallet ecosystem like Zodia, increasing liquidity and market accessibility.
The multi-chain circulation capability of USDG on Ethereum, Ink, and Solana allows over 450 million EU residents to easily access the US dollar legally and safely.
Paxos Committee, 2024 report
On which blockchains does USDG operate and what benefits does this bring?
USDG operates on popular and reputable blockchains such as Ethereum, Ink, and Solana, leveraging the advantages of each chain to expand trading capabilities, increase processing speed, and reduce gas fees for users.
This multi-chain policy not only optimizes user experience but also helps USDG ensure high flexibility, adapting better to diverse DeFi, CEX, and DEX applications.
What are the impacts of European regulations on the issuance and circulation of stablecoins?
Despite the increasingly stringent cryptocurrency legal framework in the EU, the demand for US dollar-pegged stablecoins continues to rise sharply, according to multiple market reports.
Paxos's decision to establish its entity and reserves in Europe, meeting MiCA standards, has contributed to strengthening user trust, allowing USDG to grow steadily and contributing to the development of a safe cryptocurrency ecosystem.
Criteria USDG (Paxos) Stablecoin Other (typical) Regulator Finnish Financial Supervisory Authority Varies by country, often not synchronized Asset reserves EU banks, commitment 1:1 Diverse, many cases lack transparency Supported blockchains Ethereum, Ink, Solana Ethereum, BSC, Tron Compliance with MiCA Yes Often incomplete
Frequently asked questions about USDG and European stablecoins
Is USDG safe?
USDG issued by Paxos, under the supervision of the Finnish financial authority, with 1:1 reserves ensuring transparent convertibility, increasing reliability for users.
Where can USDG be traded?
Users can trade USDG on many major exchanges such as Kraken, Gate, and use the custody services of Zodia Custody.
Which blockchains does this stablecoin support?
USDG operates on Ethereum, Ink, and Solana, optimizing interoperability and reducing transaction fees.
What is Paxos's development strategy with USDG in the EU?
Paxos focuses on issuing stablecoins that strictly comply with EU regulations, meeting the increasing demand for legal and safe US dollar stablecoins.
How does MiCA affect stablecoins?
MiCA creates a clear legal framework, requiring stablecoins to have sufficient 1:1 reserves and transparency, helping the cryptocurrency market in the EU develop sustainably.
Source: https://tintucbitcoin.com/usdg-stablecoin-paxos-ra-mat-eu/
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