Cryptopedia - Global Dollar
Global Dollar (USDG) merges the widespread acceptance and steadiness of the US dollar with the speed, programmability, and security inherent to blockchain systems. It remains accessible around the clock, allowing for 1:1 redemption into US dollars at any time, 24/7.
The token is issued by Paxos Digital Singapore Pte. Ltd. (PDS), which has obtained full authorization from the Monetary Authority of Singapore (MAS) to operate as a Major Payments Institution (MPI) providing digital payment token services. This status ensures USDG complies with MAS’s upcoming stablecoin regulations, placing it among the most compliant options available. The MAS is widely respected for its strict supervision of stablecoins and dedication to strong consumer safeguards.
Issuance of USDG follows rigorous regulatory rules covering value stability, capital sufficiency, par redemption, and full transparency. Key obligations include maintaining significant capital reserves, undergoing regular regulatory reviews, securing monthly independent attestations of reserve assets, monitoring operational processes, and completing annual audits of those reserves. Additionally, holder funds are protected against bankruptcy because reserve assets are kept in segregated trust accounts managed by PDS for the benefit of USDG owners.
USDG stands as a leading example of regulated stablecoins, delivering exceptional compliance, security, and stability within the fast-changing digital finance sector.
