Gate Joins Global Dollar Network as Tier 1 Partner to Expand USDG Adoption

Gate, a leading global cryptocurrency exchange, has officially joined the Global Dollar Network (GDN) as a Tier 1 partner, marking a significant step in its strategy to expand the adoption of stablecoins and digital payments. As part of the collaboration, Gate has integrated USDG—a U.S. dollar-backed stablecoin issued by Paxos Digital Singapore and Paxos Issuance Europe—onto its platform. USDG is fully collateralized at a 1:1 ratio with U.S. dollars or equivalent high-quality liquid assets, and it is available on Ethereum, Solana, and Ink blockchains [1]. This move reinforces Gate’s commitment to offering secure, regulated digital financial instruments to its global user base.

USDG is underpinned by a strong regulatory framework. In Singapore, it is issued by Paxos Digital Singapore, a Major Payments Institution regulated by the Monetary Authority of Singapore. In Europe, Paxos Issuance Europe operates under the Markets in Crypto-Assets (MiCA) regulation and oversight from the Finnish Financial Supervisory Authority (FIN-FSA). These measures ensure the stablecoin meets the high standards required by institutional and retail users alike [1].

Gate’s decision to join GDN is not merely a product addition but a strategic initiative to foster the development of a global PayFi (payments and finance) ecosystem. PayFi represents a new financial model that blends traditional and blockchain-based systems, with stablecoins like USDG serving as the bridge between them. According to Dr. Lin Han, founder and CEO of Gate, this partnership aligns with the company’s broader goal of creating a compliant and innovative digital asset infrastructure [1]. He emphasized that USDG will play a crucial role in advancing next-generation global payments, trading, and financial access for users worldwide.

The collaboration also reflects the growing institutionalization of the stablecoin market. The Global Dollar Network operates with a unique model that rewards network participants based on their contributions, such as technical support, integrations, and user engagement. This contrasts with traditional stablecoin mechanisms, where a limited number of entities often dominate the reward structure. By joining GDN, Gate joins other industry leaders such as Kraken and Mastercard in promoting USDG’s adoption, which is expected to increase its institutional appeal and streamline cross-border payment processes [1].

USDG’s potential to reduce volatility risks and facilitate seamless transactions between traditional and decentralized finance systems has positioned it as a key player in the evolving digital economy. As more exchanges and regulators support similar initiatives, the broader adoption of stablecoins could drive financial inclusion and improve access to global financial services [1]. This aligns with the increasing recognition of stablecoins as vital components of the modern financial infrastructure.

By integrating USDG into its platform, Gate is reinforcing its role as a trusted bridge between emerging and traditional financial systems. The partnership underscores the exchange’s focus on compliance, transparency, and innovation in the digital asset space. As GDN continues to expand, the growing use of USDG is expected to further solidify the role of stablecoins in global finance, supporting the transition toward a more open, secure, and inclusive financial future [2].

Source:

[1] Gate.com (https://www.gate.io/article/46458)

[2] PANews (https://www.panewslab.com/en/articles/b080d2c6-ff9b-494c-9c2e-0a59768f9ead)