USDG stablecoin emerges as a key player in the evolution of the European crypto market, thanks to the announced launch by Paxos and full compliance with the MiCA regulation.
The strict regulation, the entry of strategic partners like Kraken, and growing support from traditional finance strengthen the presence of the Global Dollar in Europe, accelerating the integration between the digital world and regulated financial markets.
USDG stablecoin compliant with MiCA: a new era for European cryptocurrencies
The Global Dollar (USDG) stablecoin represents the most advanced response to the demand for stable and regulated cryptocurrencies in the European Union.
Paxos, a company already known for its focus on regulations, has chosen to structure USDG in full compliance with the Regulation on Markets in Crypto-Assets (MiCA).
The issuing entity is Paxos Issuance Europe OY, based in Finland, and is directly supervised by the Finnish Financial Authority. Additionally, the presence of the central bank of Singapore among the supervisors enhances the transparency and credibility of the operation.
The compliance strategy is clear. A significant portion of the cash reserves backing USDG is held at European banks.
Paxos guarantees a one-to-one redemption against the US dollar and is committed to maintaining reserve and audit standards among the most rigorous required by the MiCA framework.
As a result, USDG stands out not only for accessibility but also for safety and reliability, in line with the expectations of institutional and retail investors.
The launch in Europe is not just a declaration of regulatory intentions, but involves a growing network of exchange and platforms.
In addition to Kraken and Gate, USDG is already available on Coinmetro, SwissBorg, Zodia Custody, Orbital, Hercle, CoinsPaid, Bitwyrem, Bitnet, and HiFi.
These partners exponentially expand the distribution and adoption potential of the token, allowing users and businesses to easily access a dollar-pegged stablecoin through numerous regulated channels.
According to Mark Greenberg, global head of consumers at Kraken, the arrival of the USDG represents a significant step forward towards a secure and usable global digital finance.
In his speech, Greenberg emphasizes that “as stablecoins become central infrastructure for global finance, the USDG stands out for its usability and growing ecosystem.”
The ecosystem built around USDG finds solid foundations thanks to the collaboration with players like Kraken, Coinmetro, and SwissBorg and meets the needs of both individuals and businesses, strengthening trust in the new digital asset and its operational solidity.
Global Dollar Network and the collaboration with traditional finance
The expansion of USDG is an integral part of the Global Dollar Network (GDN), an infrastructure dedicated to stablecoins supported by leading entities such as Paxos, Kraken, Robinhood, Anchorage Digital, and Worldpay, along with over 20 prominent companies in financial services and fintech.
The common vision is to promote the global adoption of reliable and fully regulated stablecoins.
The attention of traditional finance became more palpable when Mastercard announced its official support for USDG, joining the GDN network.
This move signals how the boundary between traditional payment systems and new digital currencies is increasingly blurred, effectively paving the way for hybrid solutions and a broader acceptance of digital asset even among banks and classic financial service providers.
It is not by chance that the European launch of USDG follows, shortly after, the very creation of GDN at the end of 2024, desired in synergy with Robinhood, Galaxy Digital, Kraken, and Paxos.
With these premises, USDG fits into a rapidly developing context and is decidedly oriented towards sector regulation.
The scenario of stablecoin shows an unprecedented expansion. At the end of June, their market capitalization had reached 239 billion dollars, but at the current moment, the figure has risen to 253.85 billion dollars.
A figure that demonstrates the growing trust of investors towards this segment of the crypto market, attracted by the stability and regulatory compliance.
According to a report by Coinbase, the engagement with stablecoin over the course of a year starting from 2024 has even tripled.
This growth concerns both individuals and companies, attracted by the potential of these digital currencies to mitigate risks typical of more volatile financial markets, in addition to offering an immediate solution for cross-border payments and transactions.
Between January 2023 and February 2025, approximately 94.2 billion dollars in stablecoin transactions were liquidated.
The stablecoins that generate yield have grown to a circulation of 11 billion dollars, representing about 4.5% of the entire market — a significant jump compared to just 1.5 billion at the beginning of 2024.
Future prospects and impact on the European financial landscape
The entry of USDG stablecoin into the European Union, in full compliance with MiCA rules and under the simultaneous supervision of Finnish and international authorities, highlights how the crypto sector is steering towards increasingly transparent and regulated models.
The participation of partners like Kraken, the growing adoption by exchanges, and the interest of financial giants like Mastercard are clear signals.
The boundary between digital finance and traditional institutions is narrowing, allowing products like USDG to become increasingly central tools for both consumers and businesses.
Looking to the future, the solidity of the Paxos model and the growth dynamics of stablecoins lay solid foundations for a global scale integration.
The coming months will be crucial for assessing the impact of the MiCA regulation and the responsiveness of the entire crypto and fintech ecosystem.
For financial operators and end users, monitoring the evolution of USDG and other stablecoins will be essential to understand how the way of doing finance will change in the digital era.
