According to The Block, on Tuesday, Paxos launched the stablecoin USDG, which is pegged to the US dollar and supported by a consortium including Robinhood, Kraken, Galaxy Digital, and Anchorage Digital, for users across the entire European Union. USDG is issued by Paxos in the European entity Paxos Issuaince Europe OY and is regulated by the Finnish Financial Supervisory Authority, following the framework of the EU's Cryptocurrency Market Regulation. Paxos will deposit a portion of its cash reserves with European banks and commit to a 1:1 redemption to comply with MiCA's asset reserve and audit requirements. Despite the tightening of EU cryptocurrency regulations, there has been a significant increase in demand for US dollar stablecoins in the market. Walter Hessert, the strategic director of Paxos, stated that the stablecoin issued by Paxos can be traded on platforms such as Kraken, Gate, CoinsPaid, and Zodia Custody, and circulated on the Ethereum, Ink, and Solana blockchains, providing a compliant US dollar stablecoin for 450 million EU residents.
