The European stablecoin market has just taken a new turn. Paxos officially launches its Global Dollar (USDG) across the European Union, backed by heavyweights like Robinhood, Kraken, and Mastercard. All this, under the watchful eye of European regulators and in full compliance with MiCA.
A stablecoin endorsed by MiCA
No more murky legality for stablecoins. USDG arrives with a fully regulated passport: it is MiCA compliant, supervised by the Finnish Financial Supervisory Authority (FIN-FSA), and also under the control of the Monetary Authority of Singapore (MAS).
This is not a minor detail. Since the implementation of MiCA, only stablecoins validated by European authorities can circulate freely in the market. By meeting the requirements of the regulation, Paxos secures the future of USDG in Europe and reassures both institutions and individuals.
A direct response to USDC’s hegemony
Until now, Circle has largely dominated the scene with its USDC, becoming the benchmark for regulated stablecoins in Europe. The arrival of USDG changes the game. Not only does it offer a serious alternative, but it also relies on a consortium as credible and powerful as Robinhood for distribution, Kraken for crypto-native integration, and Mastercard for broader use cases.
For Paxos, the message is clear: to offer a global, but regulated, transparent, and interoperable digital dollar with the traditional financial ecosystem.
Guaranteed reserves… in Europe
A technical detail with significant implications: Paxos is obligated to keep a portion of USDG reserves with European banks. This is one of the requirements of the MiCA framework, designed to limit systemic risks associated with foreign stablecoins. In simple terms: your USDG is backed by real dollars stored locally in monitored institutions.
Walter Hessert, director of strategy at Paxos, bluntly asserts: ‘USDG is a direct response to the global demand for regulated digital assets, overseen by trusted authorities, while adhering to the highest user protection standards.’
Europe, a new playground for digital dollar
The stablecoin battle is escalating in Europe. On one side, American giants seek to secure their lead. On the other, Brussels ensures strict regulation of these flows like never before.
With USDG, Paxos is not just following the rules; it’s turning them into a strategic opportunity. By offering a compliant stablecoin, backed by top partners, and ready to integrate into European markets, the company clearly aims for the top spot.
And this is just the beginning: in the current context of a stalled digital euro and distrust towards unregulated stablecoins, USDG could very well become the new standard.
