--- title: "What is Global Dollar (USDG)?" url: "https://www.bitpace.com/blog/what-is-global-dollar-usdg/" date: "2026-07-24" --- # What is Global Dollar (USDG)? Businesses that invoice internationally often face the same challenge: customers want to pay quickly and efficiently, but traditional cross-border payment infrastructure introduces delays, foreign exchange (FX) costs, and settlement uncertainty. Stablecoins address many of these issues by combining blockchain settlement with fiat-linked value. Global Dollar (USDG) is one of the newest entrants in this market. Designed as a regulated US dollar-backed stablecoin, it aims to provide businesses with a way to move and hold dollar value on blockchain networks without the volatility associated with traditional crypto assets. For merchants, payment service providers, brokers and real estate businesses, understanding how USDG works is essential before integrating it into payment or treasury operations. Bitpace supports stablecoin payments and [global settlement](https://www.bitpace.com/global-settlements/) infrastructure that allows businesses to accept assets such as USDG without building their own liquidity, custody or conversion systems. ## What is USDG? Global Dollar (USDG) is a US dollar-backed stablecoin issued by Paxos Digital Singapore Pte. Ltd., a Major Payments Institution supervised by the Monetary Authority of Singapore (MAS), as confirmed on the [official Global Dollar issuer page accessed in June 2026](https://globaldollar.com/about-usdg). Each USDG token is designed to maintain a value of one US dollar and can be redeemed with the issuer on a one-to-one basis. In practical terms, this means businesses can hold, send and receive dollar-denominated value on blockchain networks while avoiding the price volatility typically associated with crypto assets. The objective is straightforward. Businesses can invoice, settle and transfer value in dollars without relying entirely on traditional banking infrastructure. USDG launched in November 2024, per the [Paxos launch announcement](https://www.paxos.com/newsroom/paxos-introduces-global-dollar-usdg), and has become part of the broader stablecoin market, which exceeded approximately $320b in market capitalisation by 2026. Within that market, USDG has established itself as a regulated alternative for businesses seeking stable exposure to digital dollars. When this article was shared, USDG itself stood at about 2.61 billion US dollars in market capitalisation in early June 2026, ranked around 33rd by market cap on the [CoinMarketCap Global Dollar (USDG) page](https://coinmarketcap.com/currencies/global-dollar-usdg/). ### Who issues USDG Paxos issue USDG through its Singapore entity. Paxos is one of the most established names in the stablecoin sector and has developed several regulated digital asset products. For USDG specifically, DBS Bank serves as the primary banking partner responsible for reserve custody and cash management. This relationship is important because stablecoins ultimately depend on the credibility of: - The issuer - The regulator - The reserve structure - The banking partners involved When evaluating any stablecoin, these parties form the foundation of trust behind the token. ### What USDG is not There is occasional confusion around the USDG name, so clarification is important. USDG is: - Not issued by Gate.io - Not the same asset as Gemini Dollar (GUSD) - Not an exchange-specific stablecoin While exchanges may list USDG, listing a token is very different from issuing and backing it. Businesses that accept USDG are interacting directly with the Paxos-issued Global Dollar stablecoin. ## How USDG is structured The long-term reliability of any stablecoin depends on its structure. For businesses considering USDG as a payment or treasury asset, three areas matter most: - Reserve backing - Transparency - Redemption rights ### Reserves and backing USDG is backed one-to-one by US dollar-denominated assets. According to Paxos, reserves consist primarily of: - Cash deposits - Short-duration US government securities - Other highly liquid cash equivalent instruments These reserves are held in segregated, bankruptcy-remote accounts, meaning they are separated from the issuer’s operational assets. This structure aligns with Singapore’s stablecoin framework, which requires reserve assets to fully back the value of tokens in circulation. For businesses, reserve segregation reduces counterparty risk and provides greater confidence in redemption capability. The reserve approach mirrors the MAS single currency stablecoin framework, which requires backing assets valued at all times at a minimum of 100% of the par value of tokens in circulation, per the [MAS framework finalised on 15 August 2023](https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework). ### Attestations and transparency Paxos publishes USDG reserve attestation reports each month. Reports posted on or after 27 February 2026 are issued by KPMG LLP, an independent third-party accounting firm, while earlier reports came from Enrome LLP, as documented on the [Paxos USDG transparency reports page](https://www.paxos.com/usdg-transparency). Regular third-party attestations let you check that reserves match the tokens in circulation, on a recurring basis. That cadence is a meaningful signal when you weigh any dollar token against the transparency you expect for treasury balances. ### Supported chains and redemption USDG operates across multiple public blockchain networks. Paxos states that USDG is available on Solana, Ethereum, Ink, X Layer and a growing set of networks, as listed on the [Global Dollar token overview](https://globaldollar.com/about-usdg). Support currently includes networks such as: - Ethereum - Solana - Ink - X Layer Multi-chain support gives businesses flexibility when selecting settlement rails based on: - Transaction costs - Settlement speed - Customer preferences - Operational requirements Redemption rights provide another important safeguard. Under Singapore’s stablecoin framework, issuers are expected to honour redemption requests at par value within defined timeframes. Under the MAS framework that shapes the token, issuers must return par value within 5 business days of a redemption request, per the [MAS stablecoin framework](https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework). For businesses holding significant balances, redemption capability remains one of the most important indicators of stablecoin quality. ### The rewards distribution model USDG sits inside the [Global Dollar Network](https://globaldollar.com/network), an open network launched on 4 November 2024 to accelerate and reward stablecoin adoption, founded by partners including Anchorage Digital, Galaxy Digital, Kraken, Nuvei, Paxos and Robinhood, per the [network launch release of 4 November 2024](https://www.prnewswire.com/news-releases/introducing-global-dollar-network---an-open-network-to-accelerate-and-reward-global-stablecoin-adoption-driven-by-anchorage-digital-bullish-galaxy-digital-kraken-nuvei-paxos-and-robinhood-302295847.html). The network was launched to encourage broader stablecoin adoption through a shared economic model involving payment providers, custodians, exchanges and financial institutions. Founding participants included organisations such as: - Anchorage Digital - Galaxy Digital - Kraken - Nuvei - Paxos - Robinhood Rather than concentrating all reserve income with the issuer, the network allows participating partners to share in the economic benefits generated by stablecoin adoption. By 4 December 2025 the network had passed 100 partners, USDG had crossed 1 billion US dollars in market capitalisation, and more than 90% of earnings on stablecoin holdings had been distributed to partners, according to a [PR Newswire update of 4 December 2025](https://www.prnewswire.com/news-releases/global-dollar-network-grows-to-more-than-100-partners-and-usdg-stablecoin-crosses-1-billion-in-market-cap-302633038.html). ## How does USDG work in payments? A stablecoin only becomes useful when it can move value efficiently, settle reliably and convert back into fiat without unnecessary friction. USDG is designed around a relatively simple cycle of issuance, transfer and redemption, while payment providers such as Bitpace handle the operational complexity behind the scenes. The process begins when Paxos or an authorised partner issues USDG against deposited US dollars. Each token enters circulation fully backed at issuance and can then move across supported blockchain networks such as Ethereum or Solana. When a customer pays you in USDG, the transfer settles directly onchain rather than moving through correspondent banking networks. Once received, your payment provider can either: - Convert USDG immediately into fiat currency - Convert it into another stablecoin - Hold the asset onchain according to your treasury preferences If fiat redemption is required, USDG can be redeemed with Paxos at par value, with the corresponding US dollars released from reserves. For businesses operating internationally, this model removes several layers of traditional payment friction. Settlement occurs on blockchain infrastructure rather than through multiple banking intermediaries, reducing delays and improving visibility over incoming funds. This matters because on-chain settlement sidesteps several frictions in traditional rails. The global average cost of sending remittances was still 6.36% of the amount sent in the third quarter of 2025, with banks the most expensive channel at an average of 14.99%, according to the [World Bank Remittance Prices Worldwide, Issue 54 of September 2025](https://remittanceprices.worldbank.org/sites/default/files/2026-04/RPW_main_report_and_annex_Q325.pdf). Those costs remain well above the United Nations Sustainable Development Goal target of under 3% by 2030, set out in the [UN SDG indicator 10.c.1 metadata](https://unstats.un.org/sdgs/metadata/files/Metadata-10-0C-01.pdf). Against that backdrop, stablecoins have become a meaningful settlement rail, which is part of why dollar tokens like USDG now feature in treasury planning. ## What to verify before accepting USDG Before accepting USDG at scale, businesses should apply the same due diligence standards they would use for any treasury or settlement asset. A practical verification process includes: - Confirming that the token is the Paxos-issued Global Dollar (USDG) rather than another similarly named asset. - Reviewing the latest reserve attestation reports to verify reserves match circulating supply. - Confirming which blockchain network the payment will arrive on and ensuring wallet compatibility. - Understanding the redemption process and expected timelines for converting USDG back into US dollars. - Mapping Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for the jurisdictions and counterparties involved. - Monitoring updates to reserve disclosures, supported chains and issuer policies over time. These checks help ensure operational consistency and reduce exposure to issuer, liquidity or compliance risks. ## Regulatory and compliance context Stablecoin adoption increasingly depends on regulatory clarity. USDG benefits from operating within several established regulatory frameworks that provide businesses with greater confidence around reserve management, redemption rights and compliance standards. ### Singapore, the EU and the UK USDG is shaped by the MAS single currency stablecoin framework, which sets reserve, capital and redemption standards for tokens issued in Singapore, per the [MAS framework of 15 August 2023](https://www.mas.gov.sg/news/media-releases/2023/mas-finalises-stablecoin-regulatory-framework). In the European Union, the Markets in Crypto-Assets Regulation (MiCA) became fully applicable on 30 December 2024, with stablecoin rules live from 30 June 2024, as recorded in [Regulation (EU) 2023/1114](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1114). The United Kingdom is following, with the Financial Conduct Authority (FCA) naming stablecoin payments a priority for 2026 in its [2026 priorities announcement](https://www.fca.org.uk/news/press-releases/stablecoin-payments-priority-2026-fca-outlines-growth-achievements) and a new cryptoasset regime expected to commence around 25 October 2027, per the [FCA regime overview](https://www.fca.org.uk/firms/new-regime-cryptoasset-regulation). ### Travel rule and reporting Cross-border crypto transfers fall under the Financial Action Task Force (FATF) travel rule, which requires the originating provider to obtain, hold and transmit originator and beneficiary information for virtual asset transfers above a recommended threshold of 1,000 US dollars or euros, as set out on the [FATF virtual assets page](https://www.fatf-gafi.org/en/topics/virtual-assets.html). Adoption is broadening, with 85 jurisdictions having passed travel rule legislation by mid 2025, up from 65 in 2024, according to the [FATF targeted update of 26 June 2025](https://www.fatf-gafi.org/en/publications/Fatfrecommendations/targeted-update-virtual-assets-vasps-2025.html). Bitpace builds integrated KYC, AML and money laundering reporting officer (MLRO) controls into onboarding, so these obligations sit inside the workflow. ## Accepting USDG payments with Bitpace Managing a multi-chain stablecoin internally can quickly become operationally complex. Liquidity routing, custody management, reconciliation and compliance requirements all introduce additional workload. Bitpace removes much of that complexity by providing a single payment infrastructure layer capable of accepting USDG alongside a broad range of other digital assets. Bitpace enables businesses to accept USDG through one integration while maintaining operational visibility and settlement flexibility. ### Integration and settlement You can connect through the Bitpace [crypto payment gateway](https://www.bitpace.com/crypto-payment-gateway/) using a REST API or plugins for platforms such as WooCommerce and OpenCart. Bitpace connects to multiple liquidity providers for competitive pricing and near-instant settlement, with automatic conversion to EUR, USD, USDT or USDC where you want fiat or another stablecoin rather than on-chain exposure. For larger volumes, the [Bitpace OTC desk](https://www.bitpace.com/otc-desk/) helps you move size without moving the market against you. ### Custody, reconciliation and reach Bitpace gives you a choice of settlement models, from immediate conversion to fiat so you never hold the token on your customers’ behalf, through to managed on-chain holdings. Reconciliation tools map on-chain receipts to invoices and produce accounting-ready reports. For firms operating across borders, Bitpace [global settlements](https://www.bitpace.com/global-settlements/) route payouts efficiently across an interface in 20 or more languages. ## Benefits and risks for businesses USDG offers several practical advantages for businesses seeking faster, more efficient settlement infrastructure. ### Benefits - Faster cross-border settlement compared with traditional banking rails. - Stable US dollar-denominated value for invoicing and treasury management. - Reserve backing through cash and short-duration US government securities. - Regular independent reserve attestations that improve transparency. - Participation in a rewards model that may distribute reserve income to network participants. - No chargebacks and no rolling reserves for crypto payments processed through Bitpace. For merchants, PSPs and brokers, these characteristics can improve settlement speed while reducing payment friction. ## Frequently asked questions ### What is Global Dollar (USDG)? Global Dollar (USDG) is a US dollar-backed stablecoin issued by Paxos Digital Singapore through the Global Dollar Network. It launched on 1 November 2024 and is supervised by the Monetary Authority of Singapore. Each token is backed 1-to-1 by US dollar cash and short-term US Government securities and is redeemable from Paxos at par. ### Who issues USDG? USDG is issued by Paxos Digital Singapore Pte. Ltd., a Major Payments Institution supervised by the Monetary Authority of Singapore. It is not issued by Gate.io, although several exchanges list it, and it is a separate product from Gemini Dollar (GUSD). ### How is USDG backed and audited? USDG is backed 1 to 1 by US dollar deposits, short-duration US Government securities and similar cash equivalents, held in segregated, bankruptcy remote accounts. Paxos publishes monthly reserve attestations from an independent third-party accounting firm, with reports from 27 February 2026 issued by KPMG LLP. ### Which blockchains support USDG? USDG is issued on multiple public, permissionless blockchains, including Ethereum, Solana, Ink and X Layer, with more networks being added over time. It launched first on Ethereum in November 2024. ### Can Bitpace accept USDG payments? Yes. Bitpace can accept USDG through its crypto payment gateway, route liquidity across venues and provide near-instant settlement with automatic conversion to EUR, USD, USDT or USDC. Integrated KYC, AML and MLRO controls handle compliance inside the workflow. ## Related Bitpace solutions - [Crypto payment gateway](https://www.bitpace.com/crypto-payment-gateway/). - [Global settlements](https://www.bitpace.com/global-settlements/). - [OTC desk](https://www.bitpace.com/otc-desk/). - [Whitelabel solutions](https://www.bitpace.com/whitelabel/). ### 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](https://www.bitpace.com/crypto-payment-gateway/), or learn how we help with cross-border settlements at [Bitpace ](https://www.bitpace.com/global-settlements/)Global Settlements.