Paxos Launches MiCA Compliant USDG Stablecoin Across EU

• USDG satisfies the EU’s rigorous MiCA compliance regulations.
• Operates across Ethereum, Solana, and Kraken’s Ink networks.
• Fully backed by dollar reserves held in European banks.

Paxos has issued the MiCA-compliant USDG stablecoin throughout the European Union, and it will be one of the biggest milestones towards regulated digital monetary operations. The pegged stablecoin is one-to-one, and, at the moment, it is available to more than 450 million end-users distributed across 30 countries. USDG is based on the MiCA regulation and is issued by Paxos Issuance Europe and Paxos Digital Singapore. It is managed by the Finnish Financial Supervisory Authority (FIN-FSA) and the Monetary Authority of Singapore (MAS).

It is also extremely widely compatible as the stablecoin is collaborating with Ethereum, Solana (crypto), and Kraken Ink blockchain. Paxos keeps its assets in European banks in such a way that it can ensure that it will not be out of the scope of the MiCA provisions by fulfilling the assets with corresponding assets (dollars). Commenting on the launch of USDG, Walter Hessert, Head of Strategy at Paxos, stated that the launch of the asset demonstrated the dedication of the company to meet the demand for regulated digital assets in an international context in order to meet the demand securely.

Global Dollar Network Fuels USDG Expansion

The launch of USDG is enabled by the Global Dollar Network (GDN), which is backed by companies such as Kraken, Robinhood, and Mastercard, some of the most powerful players in the industry on a global scale. This network promotes the use of organizations to the extent that it is convenient to incorporate the payment schemes and trading platform. One USDG can be bought or sold on exchanges Kraken and Gate, etc., and has a current market cap of 320 million.

Paxos operates a practice of distributing reserve income with distribution partners, which is a distinction from traditional stablecoin issuers. This approach incentivizes adoption while maintaining compliance. The new stablecoin will be competing with an already established and expanding stablecoin market in Europe, where Circle won the first-ever MiCA license and runs the USDC.

Latest news shows that Fiserv has confirmed it will launch its FIUSD stablecoin on Solana through Paxos infrastructure. There is also the involvement of Master card that integrated the use of USDG in its Move network and used it in cross-border cross-currency transactions in real time so as to enhance its utility. This arrangement also indicates the future of USDG to change digital finance in Europe.

The MiCA framework of the EU, implemented in December 2024, introduces high reserve and auditing standards to stablecoins that are recognized as e-money tokens (EMTs). USDG is a secure alternative to customers and institutions because of the’ compliance of Paxos. Its introduction coincided with the time when the need for digital assets denominated in U.S. dollars grew more widespread in Europe, and its use has roughly quadrupled since the year 2024.