Global Dollar Stablecoin Launched in EU with 253.85 Billion Market Cap

The Global Dollar (USDG) stablecoin has been launched in the European Union, with its issuer, Paxos, asserting compliance with the region’s Markets in Crypto-Assets Regulation (MiCA). The stablecoin is overseen by the Finnish Financial Supervisory Authority and Singapore’s central bank, ensuring a high level of regulatory adherence.

The USDG stablecoin is now accessible in the EU through various partners, including major crypto exchanges Kraken and Gate. Other platforms offering the stablecoin include Coinmetro, SwissBorg, Zodia Custody, Orbital, Hercle, CoinsPaid, Bitwyrem, Bitnet, and HiFi. Paxos issues USDG in Europe through Paxos Issuance Europe OY, a Finland-based entity regulated by the country’s Financial Supervisory Authority. The stablecoin is designed to align with MiCA regulations, with a portion of its cash reserves held in European banks. Paxos guarantees one-to-one redemption and adheres to MiCA’s stringent reserve and audit requirements.

Mark Greenberg, global head of consumer at Kraken, highlighted the significance of stablecoins in global finance, stating that “as stablecoins become core infrastructure for global finance, USDG stands out for its usability and growing ecosystem.”

The expansion into Europe is part of the broader Global Dollar Network (GDN) initiative, supported by Paxos, Kraken, Robinhood, Anchorage Digital, Worldpay, and over 20 additional financial and fintech companies. Mastercard recently joined the GDN initiative and announced its support for USDG, indicating interest from traditional finance. This expansion follows the late 2024 launch of the Global Dollar Network in partnership with Robinhood, Galaxy Digital, Kraken, and Paxos.

Walter Hessert, head of strategy at Paxos, noted the increasing demand for stablecoins. Recent data from the real-world asset (RWA) tokenization tracker RWA.xyz indicated that stablecoins reached a $239 billion market capitalization in late June, with that figure rising to $253.85 billion at the time of writing. A recent report by crypto exchange also shows that interest in using stablecoins has tripled year-over-year since 2024. This growth is driven by the belief among consumers and both the F500 and SMBs that stablecoins can help address some of their biggest financial pain points.

According to data from late May, $94.2 billion in stablecoin transactions were settled between January 2023 and February 2025. This highlights the growing significance of stablecoins in the global payment infrastructure. Additionally, yield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market. This indicates rapid growth, having increased from just $1.5 billion and a 1% market share at the start of 2024.

The launch of the Global Dollar stablecoin in the EU is a significant development in the cryptocurrency landscape. Its compliance with MiCA regulations ensures that it meets the stringent standards set by European regulators, which is crucial for gaining trust and acceptance within the EU market. The support from major players like Kraken, Robinhood, and Mastercard further bolsters the stablecoin's credibility and potential for widespread adoption.

This initiative aims to facilitate international transactions and enhance interoperability with U.S. dollar stablecoins issued overseas. By adhering to MiCA regulations, Paxos aims to create a stable and reliable digital asset that can be used for various financial transactions. This move is expected to attract more users and institutions to the stablecoin ecosystem, as it provides a secure and compliant alternative to traditional fiat currencies.

The compliance of the Global Dollar stablecoin with MiCA regulations is a significant milestone for the cryptocurrency industry. It demonstrates that stablecoins can operate within a regulated framework, addressing concerns about their stability and security. This development is likely to encourage other stablecoin issuers to seek regulatory compliance, fostering a more stable and trustworthy digital asset market.

The support from major players like Kraken, Robinhood, and Mastercard is a testament to the potential of the Global Dollar stablecoin. These companies bring a wealth of experience and resources to the table, which will be instrumental in driving the adoption and integration of the stablecoin. Their involvement also signals a growing acceptance of stablecoins within the traditional financial sector, paving the way for further innovation and collaboration.

In summary, the launch of the Global Dollar stablecoin in the EU, backed by Kraken, Robinhood, and Mastercard, represents a significant step forward for the cryptocurrency industry. Its compliance with MiCA regulations and the support from major players position it as a reliable and secure digital asset, poised to play a crucial role in the global financial system. This development is likely to have a positive impact on the adoption and integration of stablecoins, fostering a more stable and trustworthy digital asset market.