What is Global Dollar?
Global Dollar (USDG) is a stablecoin pegged to the US dollar at a 1:1 ratio, issued by a regulated emitter within a network of partners—major fintech and crypto companies that jointly develop its circulation and share the product economics.
How it works
Tokens are backed by reserves of cash and short-term US Treasury bonds; issuance and redemption occur at a fixed rate through an emitter operating under financial oversight. The model's distinctive feature is the distribution of reserve income among participants in the partner network, which encourages integration of the token into payment services.
Pros and Cons
- Pros: regulated status, conservative reserves, support from multiple major platforms.
- Cons: relatively short history, competition with established stablecoins, standard emitter risks and address freezing.