Overview
Global Dollar (USDG) is a dollar stablecoin issued by Paxos, one of the most established regulated stablecoin issuers. It launched in late 2024 together with the Global Dollar Network, founded by Paxos, Robinhood, Kraken, Galaxy Digital, Anchorage Digital, Bullish and Nuvei.
The idea: instead of the issuer keeping all the interest earned on reserves (as Tether and Circle mostly do), USDG shares that income with the companies that distribute it, so they can offer rewards to their users. The network grew to over 150 members.
How it works
- USDG is backed by cash and short-term US Treasuries, with monthly reports reviewed by KPMG since February 2026.
- It is issued under Singapore’s stablecoin framework and is compliant with Europe’s MiCA rules.
- Partners like Kraken offer rewards on USDG balances, and Robinhood chose USDG for Robinhood Earn on its new Robinhood Chain in July 2026.
- USDG runs on Ethereum, Solana and other networks.
The USDG token
| USDG at a glance | |
|---|---|
| In circulation (Oct 2026) | about $3.2 billion |
| Target value | $1.00 |
| Launched | November 2024 |
| Market cap | about $3.2 billion (#34) |
USDG passed $1 billion in December 2025 and $3 billion by July 2026.
Risks
- Distributor dependence. A few large partners bring most of the demand.
- Interest rates. If rates fall, rewards shrink and USDG becomes less attractive.
- Regulation. US rules on sharing stablecoin income with users are still being finalized.
- Issuer operations. Paxos briefly minted $300 trillion of PayPal’s stablecoin by mistake in October 2025 (reversed within minutes), a reminder that operational errors can happen.
USDG vs. the competition
| USDG | USDC | PYUSD | |
|---|---|---|---|
| Issuer | Paxos (network of partners) | Circle | Paxos for PayPal |
| Reserve income | Shared with partners | Mostly kept by Circle (shared with Coinbase) | PayPal |
| EU MiCA compliant | Yes | Yes | No |
Our verdict
USDG is a well-regulated stablecoin with a smart business model that has attracted major partners. For users of Robinhood, Kraken and other members, it can be a sensible way to hold dollars on-chain and earn rewards.
Still, it is younger and smaller than USDC or USDT, and its growth depends on a few partners. USDG is a tool, not an investment; spreading large amounts across stablecoins reduces risk.
This review is for information only and is not financial advice.