Robinhood and Kraken-backed Dollar-denominated stablecoin USDG expands into Europe | CoinDesk JAPAN

• USDG is regulated by the EU's Markets in Crypto-Assets Regulation (MiCA), as well as by the Financial Supervisory Authority of Finland (FIN-FSA) and the Monetary Authority of Singapore (MAS).
• Under MiCA, Paxos, which issues USDG, is required to jointly hold part of its reserve assets with European banking partners.

The stablecoin Global Dollar (USDG), issued by the fintech company Paxos and supported by a major consortium of companies including Robinhood, Kraken, and Mastercard, was announced in a press release on July 1 to be made available to consumers in the European Union (EU).

Paxos stated in a statement that USDG is regulated by the European Cryptocurrency Market Regulation (MiCA), the Finnish Financial Supervisory Authority (FIN-FSA), and the Monetary Authority of Singapore (MAS).

In Europe, Circle's USD Coin (USDC) is the largest among the stablecoins regulated by MiCA, while the demand for Dollar-backed stablecoins is expanding. Paxos stated that USDG will have a significant impact as an alternative stablecoin subject to regulation.

"USDG is a fully regulated global Dollar-pegged stablecoin compliant with MiCA, and its availability in the EU demonstrates our commitment to providing global cryptocurrencies under sound regulatory oversight and meeting the highest consumer protection standards," said Walter Hessert, Chief Strategy Officer of Paxos.

Paxos explains that in order to meet the regulatory requirements of the EU's MiCA, Paxos Issuance Europe, which is under the regulation of the FIN-FSA, must jointly hold a portion of the USDG reserve assets with European banking partners.