Paxos Launches USDG Stablecoin in Europe for 450 Million Users

Paxos, a New York-based financial and blockchain firm, has launched the Global Dollar (USDG) stablecoin in Europe, making it accessible to over 450 million users across 30 countries. This move aligns with Paxos' vision to offer regulated digital assets globally and meets the increasing demand for US dollar-backed stablecoins in the region. The USDG stablecoin is compliant with the EU’s Markets in Crypto Assets (MiCA) regulation, enhancing its appeal and trustworthiness among European users.

The USDG stablecoin is backed by the US dollar and is fully redeemable from Paxos on a one-to-one basis. It is currently available on multiple blockchain platforms, including Solana, Ethereum, and Ink, and can be accessed through various exchange partners such as Kraken, Gate, SwissBorg, Bitnet, Coinmetro, Hercle, CoinsPaid, Bitwyre, and HiFi. Paxos launched the USDG stablecoin in November 2024 and has since sought compliance from the Monetary Authority of Singapore (MAS).

Paxos has made significant strides in the stablecoin sector by partnering with financial and tech giants to build unique products. The firm has received a license from the New York State Department of Financial Services (NYDFS) to operate in the virtual currency space and has issued numerous regulated stablecoins, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). In October 2024, Paxos launched its yield-bearing stablecoin, Lift Dollar (USDL), on the Arbitrum Layer 2 network, offering users fast transactions and inexpensive means of gaming, social applications, and Decentralized Finance (DeFi).

Paxos' goal is to release digital assets that are supervised by prudential regulators, meeting the highest standards of consumer protection. Paxos Issuance Europe, regulated by FIN-FSA, now holds a portion of USDG reserve assets with European banking partners. This ensures that the stablecoin is backed by robust financial infrastructure, providing users with confidence and security.

The launch of USDG in Europe highlights Paxos’ efforts in developing products that are foundational for a new, open financial system. The firm aims to transform the financial system to enable assets to move seamlessly across the world. Paxos has collaborated with leading global enterprises to tokenize, custody, and trade assets, further solidifying its reputation in the blockchain space.

Stablecoins, digital assets pegged to fiat currencies like the US dollar, offer a hedge against the volatility of cryptocurrencies. This unique feature makes them attractive for transactions and savings, as they provide a stable store of value. Over the past few years, stablecoins have become popular for global payments, allowing consumers to bypass traditional banking systems and make transactions cheaper and faster. The total stablecoin market cap stands at $263 billion, reflecting a significant increase from the $5 billion market cap recorded in 2019. Tether (USDT) and Circle’s USDC remain the top-performing stablecoins, with USDT having a market cap of over $157 billion and USDC following with $61.4 billion.

Paxos' expansion into Europe with the USDG stablecoin is a strategic move that capitalizes on the growing demand for regulated digital assets. By complying with the EU’s MiCA regulation and partnering with European banking institutions, Paxos ensures that USDG meets the highest standards of consumer protection and regulatory compliance. This launch not only benefits European users but also strengthens Paxos' position as a leader in the stablecoin sector, paving the way for further innovation and adoption of digital assets globally.