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Paxos Rolls Out MiCA-Compliant USDG Stablecoin: Here are the details
In a significant development for the cryptocurrency space, Paxos has successfully launched its USDG stablecoin in the European Union. This milestone achievement comes after securing regulatory approval and meeting all the necessary requirements under the Markets in Crypto-Assets (MiCA) framework.
It is noteworthy that the newly launched USDG stablecoin will be overseen by the Finnish Financial Supervisory Authority, ensuring its compliance with both EU and Singapore’s regulatory standards. In essence, this means that Paxos guarantees one-to-one redemption at any given time, regardless of jurisdiction.
The newly released USDG is also part of the Global Dollar Network initiative, an infrastructure project led by Paxos in collaboration with over 20 financial and fintech companies. This collaborative effort aims to establish a regulated environment for internationally used stablecoins, which will undoubtedly have far-reaching implications on the crypto landscape.
Paxos has taken a significant step forward in its mission to make USDG a leading player in the global stablecoin market by issuing these assets through its Finland-based subsidiary. In doing so, the company ensures that cash reserves are fully backed by European banks, thereby guaranteeing the integrity of its tokens.
It is not surprising that Paxos has remained committed to Singapore’s upcoming stablecoin framework since USDG’s initial launch in November 2024. This strategy allows the company to operate with institutional backing in two major jurisdictions, fostering a stablecoin designed for cross-border transactions, digital payments, and decentralized applications.
In a related development, the stablecoin market capitalization has surpassed $250 billion as of June 2025, primarily driven by new yield-bearing products. Coinbase recently reported that stablecoin adoption has tripled over the past twelve months, both among retail users and corporate solutions.
Source: crypto-economy.com
