Cross-border payments remain one of the most inefficient parts of international commerce. Settlement delays, foreign exchange costs and fragmented banking infrastructure create friction that affects both cash flow and customer experience. Businesses often find themselves waiting days for funds to arrive while managing uncertain costs and increasingly complex reconciliation processes.
Global Dollar (USDG) offers a different approach. Combining the stability of the US dollar with blockchain settlement infrastructure enables businesses to move value globally with greater speed, transparency and predictability. When paired with Bitpace’s payment and settlement infrastructure, USDG can become a practical tool for improving treasury operations and reducing payment friction.
The problem with cross-border payments
Speed and settlement delays
Traditional international transfers move through correspondent banking networks, where payments may pass through several intermediary institutions before reaching their destination.
This process often results in settlement times ranging from one to five business days.
For businesses, these delays create several challenges:
- Working capital remains tied up longer
- Treasury forecasting becomes less predictable
- Additional liquidity reserves may be required
- Customer and supplier relationships can be affected by slow settlement
Between 2011 and 2018, the number of active correspondents fell by 20% and active corridors fell by 10%, even as payment volumes kept rising, according to the Bank for International Settlements analysis of the global retreat of correspondent banks. Fewer relationships mean longer routing and more friction.
Opaque fees and abandoned carts
Cross-border payments often involve multiple hidden cost layers.
Customers and businesses may encounter:
- Card network interchange fees
- Correspondent banking deductions
- Foreign exchange spreads
- Payment processor charges
These costs are often difficult to predict before settlement.
For merchants, unexpected fees and poor exchange rates can contribute directly to abandoned transactions and lower conversion rates.
The global average cost of sending remittances was 6.36% of the amount sent in Q3 2025, with banks the most expensive channel at 14.99%, according to the World Bank Remittance Prices Worldwide Issue 54.
Complex FX and reconciliation
International payments frequently generate multiple accounting events.
A single transaction may involve:
- Initial payment authorisation
- Currency conversion
- Settlement through an intermediary currency
- Final account credit
- Realised foreign exchange gains or losses
Reconciling these events requires significant manual effort, particularly when counterparties use different reporting formats or settlement systems.
For regulated businesses, the challenge is even greater because transaction records must support audit and compliance requirements across multiple jurisdictions.
What is USDG?
Global Dollar issued by Paxos
USDG is a US dollar-backed stablecoin issued by Paxos Digital Singapore Pte. Ltd., operating under the supervision of the Monetary Authority of Singapore.
Each USDG token is fully redeemable for one US dollar and is designed to provide a stable digital representation of dollar value on public blockchain networks.
For businesses, this creates a practical settlement asset that combines:
- Dollar-denominated value
- Blockchain settlement speed
- Global transfer capability
- Predictable redemption mechanisms
Rather than relying on correspondent banking infrastructure for every transaction, businesses can move USD value directly on-chain.
Reserves and monthly attestations
USDG is backed by reserves consisting primarily of:
- US dollar deposits
- Short-duration US government securities
- Cash equivalent instruments
These assets are held in segregated accounts designed to protect reserve holders and support redemption obligations.
USDG is backed 1-to-1 by US dollar deposits, short-duration US Government securities and other cash equivalents, held in segregated, bankruptcy remote accounts with DBS Bank. Paxos publishes monthly USDG reserve attestation reports from an independent accounting firm, evidence that reserves match circulating tokens.
Under the MAS single currency stablecoin framework finalised on 15 August 2023, issuers must hold reserve assets equal to at least 100% of tokens in circulation. They must return the par value to holders within 5 business days of a redemption request.
Supported chains and reach
USDG is issued on multiple public, permissionless blockchains, including Ethereum, Solana, Ink and X Layer, with Ethereum first at launch. The Global Dollar Network surpassed 100 partners, and USDG reached a market capitalisation of 1 billion US dollars by 4 December 2025, according to the Global Dollar Network’s 100-partner milestone announcement. USDG sits within a market measured at roughly 320 billion US dollars in 2026, per the DefiLlama stablecoins dashboard.
How USDG works in practice
On-chain settlement finality
One of the biggest advantages of USDG is settlement speed.
Once a transaction receives the required blockchain confirmations, settlement is effectively final.
Unlike traditional banking rails, there is no need to wait for multiple intermediary institutions to process and reconcile the transfer.
This reduces uncertainty and allows finance teams to gain visibility over incoming funds much faster.
Custody and wallet flows
Businesses can choose different custody approaches depending on their operational needs.
Options include:
- Self-custody wallets
- Institutional custody providers
- Managed custody services
For larger organisations, institutional custody solutions often provide a balance between security, compliance and operational efficiency.
Bitpace supports various settlement and custody models, enabling businesses to align payment operations with internal treasury policies.
Fiat conversion and on ramps
Stablecoins become particularly useful when conversion back into fiat is straightforward.
Bitpace connects to multiple liquidity providers and supports efficient conversion between USDG, fiat currencies and other digital assets.
This reduces dependence on individual counterparties while improving pricing consistency.
For larger transactions, the Bitpace OTC Desk provides access to deeper liquidity pools and more efficient execution.
Why does the USDG’s faster settlement matter
Speed and working capital
A merchant who once waited 3 days for cross-border card settlement can receive USD-denominated receipts within minutes and convert them on demand, reducing overdraft use.
Under the Financial Stability Board G20 targets for enhancing cross-border payments, 75% of payments in each segment should be credited within 1 hour, a bar that chain settlement meets.
Cost reduction and margin preservation
By reducing reliance on correspondent banking networks, stablecoin settlement can lower:
- Intermediary banking fees
- Foreign exchange costs
- Operational reconciliation expenses
For businesses operating internationally, these savings become increasingly meaningful as transaction volume grows.
Transparency and reconciliation
Blockchain settlement creates a transparent and immutable record of every transaction.
Each transfer includes:
- A transaction hash
- Settlement timestamp
- Verifiable transfer history
This improves auditability and reduces the time finance teams spend reconciling transactions manually.
Programmability and consistency
USDG also supports payment structures that are difficult to implement efficiently through traditional banking systems.
Examples include:
- Automated split settlements
- Escrow arrangements
- Conditional releases
- Milestone-based payments
These capabilities create new opportunities for marketplaces, PSPs, brokers, and real estate businesses to manage more complex payment workflows.
Regulatory context you should track
MiCA and the European framework
As set out in Article 149 of Regulation (EU) 2023/1114 (MiCA), the European Union’s Markets in Crypto Assets Regulation (MiCA) represents one of the most significant developments in the stablecoin sector.
Under MiCA, issuers of asset-referenced tokens and e-money tokens must meet requirements around:
- Reserve management
- Redemption rights
- Governance
- Operational resilience
- Disclosure and reporting
For businesses, this raises the baseline standard expected of stablecoin issuers and provides greater confidence around reserve quality and redemption mechanisms.
When evaluating USDG or any stablecoin, alignment with established regulatory frameworks should be part of the due diligence process.
FATF travel rule and global standards
The Financial Action Task Force continues to expand expectations around virtual asset transfers.
The Financial Action Task Force (FATF) travel rule requires the originating virtual asset service provider to obtain and transmit originator and beneficiary information, with a recommended threshold of 1,000 US dollars or euros, per the FATF virtual assets standards. By its June 2025 targeted update, 85 jurisdictions had passed travel rule legislation, up from 65 a year earlier.
Travel Rule adoption is accelerating globally, making compliance infrastructure increasingly important for payment operations involving stablecoins.
Businesses accepting USDG should ensure their payment infrastructure supports:
- Know Your Customer (KYC) verification
- Anti-Money Laundering (AML) screening
- Travel Rule requirements
- Transaction monitoring
- Record retention
Bitpace incorporates these controls directly into onboarding and payment workflows, helping businesses reduce operational complexity while maintaining compliance.
Singapore and the UK direction of travel
USDG operates within Singapore’s stablecoin framework under the supervision of the Monetary Authority of Singapore.
This framework establishes requirements around:
- Reserve backing
- Redemption obligations
- Capital management
- Operational safeguards
The United Kingdom is moving in a similar direction, with stablecoin regulation becoming a growing focus for policymakers and regulators.
Businesses operating across multiple jurisdictions should continue monitoring local implementation timelines and compliance requirements as stablecoin regulation evolves.
How USDG reshapes your workflows
Beyond regulation, the practical value of USDG lies in how it changes payment and treasury operations.
E-commerce merchants
For e-commerce businesses, USDG can reduce several sources of payment friction.
Benefits include:
- Predictable US dollar pricing
- Reduced FX exposure
- Faster settlement
- Lower cross-border payment costs
- Reduced reliance on international card infrastructure
Because customers can settle directly in a stable dollar-denominated asset, merchants avoid many of the hidden costs associated with international card payments and correspondent banking.
Bitpace integrates USDG payments into platforms such as WooCommerce and OpenCart, simplifying implementation.
Payment service providers
PSPs can use USDG to improve settlement flexibility while maintaining stable dollar-denominated value.
Potential benefits include:
- Real-time settlement capabilities
- Pooled wallet management
- Merchant-specific settlement preferences
- Automated reconciliation workflows
Through Bitpace, merchants can choose whether to receive:
- USDG directly
- Fiat currency
- Alternative stablecoins
This flexibility allows PSPs to support a broader range of treasury and settlement requirements.
FX brokers and real estate firms
For brokers, USDG provides access to stable dollar liquidity without requiring clients to move funds through traditional banking systems.
Advantages include:
- Faster client deposits
- Faster withdrawals
- Reduced treasury volatility
- Improved liquidity management
Real estate businesses benefit from:
- Faster escrow funding
- Cross-border settlement efficiency
- Verifiable proof of funds
- Reduced dependence on international wire transfers
Large-value transactions can therefore move more efficiently while maintaining transparency.
Benefits and trade-offs
USDG offers meaningful operational advantages, but businesses should evaluate both the opportunities and the risks before scaling its use.
Benefits
- Faster settlement than traditional correspondent banking rails
- Stable US dollar-denominated value for invoicing and treasury operations
- Reduced FX friction across international markets
- Regular reserve attestations and transparency reporting
- Programmable payment workflows
- No chargebacks and no rolling reserves when processed through Bitpace
For many businesses, these benefits directly improve cash flow visibility and treasury efficiency.
Trade-offs
USDG is not risk-free.
Key considerations include:
- Issuer and reserve management risk
- Liquidity constraints during periods of market stress
- Dependence on fiat redemption infrastructure
- Regulatory complexity across jurisdictions
- Custody and operational security requirements
These risks can be managed, but they should not be ignored.
Risk mitigation checklist
Businesses considering USDG should establish clear controls before accepting meaningful transaction volume.
Recommended actions include:
- Review reserve attestations regularly
- Diversify liquidity provider relationships
- Maintain fiat liquidity buffers where necessary
- Implement strong KYC and AML controls
- Conduct periodic security reviews
- Establish clear service level agreements with providers
Bitpace’s multi-provider liquidity model helps reduce concentration risk while improving pricing and settlement reliability.
Accounting, security and reserves
Accounting and tax reporting
Stablecoin payments should be integrated directly into accounting workflows.
Best practices include:
- Recording fiat value at settlement
- Maintaining conversion records
- Matching blockchain transactions to ledger entries
- Automating reconciliation where possible
Bitpace provides reporting tools that help finance teams connect blockchain activity to traditional accounting systems.
Security and proof of reserves
Before accepting USDG, businesses should evaluate:
- Wallet security controls
- Custody arrangements
- Reserve transparency
- Audit frequency
- Redemption procedures
Strong key management and institutional custody standards remain essential, particularly for organisations processing large volumes.
How to pilot USDG with Bitpace
Define use case and targets
Start by determining whether the primary objective is:
- Faster settlement
- Lower payment costs
- Improved treasury efficiency
- Expansion into new markets
Clear metrics make pilot evaluation significantly easier.
Map flows and choose partners
Document:
- Payment flows
- Ledger entries
- Conversion points
- Treasury treatment
- Redemption procedures
Businesses should also identify liquidity and custody partners before launching production workflows.
Run a controlled pilot and iterate
A structured pilot should include:
- Limited transaction volume
- Defined success criteria
- Daily reconciliation checks
- Liquidity monitoring
- Compliance validation
After several months of operation, businesses can evaluate performance and scale accordingly.
How Bitpace helps you adopt USDG
Bitpace was built to remove the operational burden of accepting crypto payments.
Routing, settlement and conversion
Bitpace connects to multiple liquidity providers and supports:
- Near-instant settlement
- Automated conversion
- Multi-currency payouts
- Competitive pricing across corridors
Businesses can settle directly into EUR, USD, USDT or USDC while maintaining visibility through reconciliation and reporting tools.
Compliance, custody and whitelabel
Bitpace integrates:
- AML screening
- KYC controls
- Travel Rule workflows
- Custody integrations
- Institutional reporting
For PSPs and enterprise businesses, Whitelabel payment solutions enable crypto acceptance under their own brand while Bitpace manages the underlying infrastructure.
Supporting more than 70 cryptos and more than 20 languages, the platform provides a scalable way to incorporate USDG into international payment operations without building internal liquidity, settlement, and compliance systems.
Related Bitpace solutions
- Global settlements for fast, predictable cross-border payouts.
- Crypto payment gateway for merchant acceptance and integrations.
- Whitelabel for branded deployments and fast go-to-market.
- OTC desk for large volume conversions and liquidity.
Frequently asked questions
What is USDG?
USDG is Global Dollar, a US dollar-backed stablecoin issued by Paxos Digital Singapore Pte. Ltd., a Major Payments Institution supervised by the Monetary Authority of Singapore. It launched on the Global Dollar Network on 4 November 2024 and is fully redeemable from Paxos on a 1-to-1 basis for US dollars, backed by US dollar deposits and short-duration US Government securities held in segregated accounts.
How does USDG speed up payments?
USDG moves on-chain and settles in minutes rather than days, removing correspondent bank chains and float risk. Faster finality means receivables can be used or converted within the same business day in many corridors, improving cash conversion cycles and reducing working capital needs.
Is USDG regulated?
Yes. Paxos Digital Singapore issues USDG under the supervision of the Monetary Authority of Singapore, which requires reserve backing of at least 100% of tokens in circulation and redemption at par within 5 business days.
How does USDG simplify reconciliation?
USDG reduces multi-leg FX conversions and aligns settlement timestamps with your cashbook, cutting the number of ledger entries you must match. Each transfer carries a unique on-chain transaction reference, which makes automated matching easier and lowers manual reconciliation time and support overhead.
Can Bitpace convert USDG to local currency?
Yes. Bitpace connects to multiple liquidity providers and offers near-instant settlement with automatic conversion to EUR, USD, USDT, or USDC, plus an OTC desk for larger volumes.
Start accepting crypto payments with Bitpace’s crypto payment gateway
Accept Bitcoin, Ethereum, Litecoin, and a broad range of established cryptos through the Bitpace crypto payment gateway. Connect with the Bitpace team to implement fast, secure, and borderless crypto settlements for your business.
Bitpace is ready to partner with you as you transition to or expand your crypto payment strategy. Explore the comprehensive resources on Bitpace’s crypto payment gateway, or learn how we help with cross-border settlements at Bitpace Global Settlements.
