Global Dollar (USDG) — Complete Guide

USDG (Global Dollar) is a stablecoin issued by Paxos Trust Company under a new consortium model, launched in November 2024. Unlike USDP (which Paxos issues for itself), USDG is designed as a shared stablecoin infrastructure where revenue from Treasury reserves is distributed to network partners — exchanges, wallets, and apps — as an incentive to integrate and distribute USDG. Partners include Robinhood, Kraken, Galaxy Digital, and Anchorage Digital.

Paxos mints USDG 1:1 against USD cash and US Treasury bill reserves, with all assets held in segregated Paxos-custodied accounts regulated by the New York Department of Financial Services (NYDFS). The innovation is in the revenue-sharing model: unlike USDC (where Circle keeps reserve interest) or USDT (where Tether keeps interest), USDG distributes a large portion of reserve yield to network participants who hold or distribute USDG. This creates a commercial incentive for exchanges and wallets to prefer USDG over competitors. Regular reserve attestations are published by Withum.

• +Revenue-sharing model pays network partners from Treasury yield — creates distribution flywheel
• +NYDFS-regulated by Paxos, one of the most credentialed stablecoin issuers in the US
• +Consortium model: Robinhood, Kraken, Galaxy, Anchorage as launch partners provides instant distribution
• +Solana and BNB Chain multi-chain from day one for broad DeFi reach
• +Monthly Withum reserve attestations with same rigor as USDP
• +Transparent incentive structure designed explicitly to compete with USDC and USDT on economics

• !Revenue-sharing model has not been battle-tested at scale — partners may prefer terms to change
• !Supply is small at launch; liquidity depth is thin, limiting large trade execution
• !Paxos has previously shut down stablecoin products (PAX Gold's growth stalled; Binance USD forced to shut down)