What is Global Dollar (USDG)?
Global Dollar (USDG) represents a stablecoin pegged to the US dollar issued through the Global Dollar Network. It is based on Paxos’ tokenization blockchain network, ensuring that each token mirrors the value of the dollar on a one-to-one basis, facilitating third-party exchange and settlement on blockchains.
USDG was launched by the Global Dollar Network, a coalition of exchanges, fintechs, and payment companies that includes backers such as Paxos, Robinhood, Kraken, and Galaxy Digital. Unlike single-issue stablecoins such as Tether (USDT) or USDC, Global Dollar is a shared network settlement token and therefore rewards on reserves are distributed to participants rather than being reinvested exclusively by the issuer.
Global Dollar Price Today
USDG is engineered to trade at a constant $1.00, so its price isn’t driven by market speculation the way Ethereum and Bitcoin prices are. Instead, the relevant metrics to watch are its peg stability, circulating supply, and on-chain transaction volume, which reflect how widely it’s being adopted for payments, remittances, and trading pairs across exchanges.
How Does USDG Maintain Its Peg?
USDG maintains its dollar peg through a 1:1 backing model. For every USDG token in circulation, Paxos holds an equivalent amount in reserve assets, allowing tokens to be minted and redeemed on demand. This redemption mechanism is what keeps the price anchored near $1, since arbitrage traders can buy or sell USDG against its underlying reserves whenever the price drifts.
USDG Reserves and Backing
Reserves held in support of USDG consist of cash and highly liquid, short-term US treasury instruments. As with other regulated stablecoins, Paxos, as issuer and custodian, periodically publishes confirmations that reserves are sufficient to cover issued tokens in circulation.
What Makes Global Dollar Different from Other Stablecoins?
The primary difference is Global Dollars’ revenue sharing. With most stablecoins, the income from the yield of their reserves is delivered to the issuer. With USDG, a part of the revenue from the yield of the TVL (total volume locked) is distributed to all the exchanges and platforms that launch the token, thus providing additional rewards to the users for engaging with USDG on these platforms.
| Stablecoin | Model | Primary Issuer |
|---|---|---|
| USDG | Network-shared reserve yield | Paxos/Global Dollar Network |
| USDC | Single-issuer | Circle |
| USDT | Single-issuer | Tether |
| DAI | Overcollateralized, decentralized | MakerDAO |
This structure puts Global Dollar in a similar competitive space to other dollar-pegged tokens like USDC, DAI, and newer entrants such as USD1 and Ethena’s USDe, each of which takes a different approach to backing and yield distribution.
How to Buy and Store USDG
USDG is available on exchanges that participate in the Global Dollar Network and can typically be purchased with fiat or exchanged for other crypto assets. From there, you can leave your USDG on the exchange or transfer it to a self-custody wallet. If you’re holding significant amounts of crypto for the long term, it’s worth considering best practices for crypto storage, such as putting assets you aren’t going to actively use in a cold wallet.
Important Note
Note that stablecoins are bearer assets on-chain, meaning anyone who possesses crypto private keys can spend them.
Is Global Dollar a Good Investment?
The USDG token is not intended to be an investment instrument that appreciates in value. It is a stablecoin, which means its value is tied to the US dollar. The main advantage of this coin is its liquidity, flexibility, and ability to provide yields to active traders who speculate on price changes of crypto assets. Like any other stablecoin, USDG should be considered from the perspective of regulations and the value of reserves in real-time.