Paxos now offers its USD-backed stablecoin, USDG, to users across the EU under full regulatory approval.
- USDG is backed by U.S. dollars and supervised by European and Singaporean regulators.
- Major companies like Robinhood, Kraken, and Mastercard support USDG.
- It follows strict EU laws under the MiCA regulation.
USDG Expands into Europe
Paxos has released its new stablecoin, USDG, in the European Union. The company announced that the coin is now available to people living in EU countries. USDG is a digital currency tied to the U.S. dollar. This means its value stays close to one U.S. dollar at all times.
Backed by Big Names and Regulators
USDG is not just another stablecoin. It’s backed by major firms like Robinhood, Kraken, and Mastercard. It is also fully regulated, which makes it different from many other coins. Paxos says that USDG meets rules from Europe’s Markets in Crypto-Assets (MiCA) regulation. It is also regulated by FIN-FSA in Finland and MAS in Singapore.
Growing Demand in Europe
European users are showing more interest in digital dollars. Until now, USDC from Circle was the top MiCA-regulated choice. Paxos hopes USDG will become a popular option too. The company says that being regulated helps build trust. It also protects consumers by following strict rules.
MiCA Compliance and Local Banking
To follow MiCA laws, Paxos must keep part of its USDG reserve funds in European banks. This is done through its EU arm, Paxos Issuance Europe. The team says this setup helps ensure the coin is both safe and stable for users. Paxos wants to show that fully regulated stablecoins can become global tools for payments and money storage.
Source: coindesk.com
