Paxos Launches Global Dollar Stablecoin in EU, Market Cap Hits $253.85 Billion

Paxos has launched the Global Dollar (USDG) stablecoin in the European Union, ensuring compliance with the region’s Markets in Crypto-Assets Regulation (MiCA). The stablecoin is now available through various partners, including major crypto exchanges Kraken and Gate, as well as other platforms such as Coinmetro, SwissBorg, Zodia Custody, Orbital, Hercle, CoinsPaid, Bitwyrem, Bitnet, and HiFi. Paxos issues USDG in Europe through its Finland-based entity, Paxos Issuance Europe OY, which is overseen by the Finnish Financial Supervisory Authority. The stablecoin is structured 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, noting that USDG stands out for its usability and growing ecosystem. This launch 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, signaling interest from traditional finance. The expansion into Europe 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, emphasized the rapid ascent in 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 a 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 large and small businesses 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 indicates that stablecoins have established themselves as growing and significant components of the global payment infrastructure. Additionally, yield-bearing stablecoins have soared to $11 billion in circulation, representing 4.5% of the total stablecoin market. This rapid growth, having increased from just $1.5 billion and a 1% market share at the start of 2024, underscores the increasing importance of stablecoins in the financial ecosystem.