Kraken & Robinhood Back USDG – Launching in EU, Serving 450 Million People

How USDG launched in EU?

USDG is issued by Paxos Issuance Europe OY, a subsidiary in Finland under the supervision of FIN-FSA, with strict compliance with MiCA regulations. This stablecoin is supported by the Global Dollar Network (GDN), a collaborative ecosystem of leading financial and fintech companies such as Anchorage Digital, Kraken, Robinhood, Mastercard, and over 20 other partners.

Launched on July 1, 2025, USDG is available on major exchanges such as Kraken and Gate, allowing users in the EU to use the stablecoin for payments, transactions, and other financial applications. To meet MiCA requirements, Paxos maintains a portion of USDG reserves in European banks, ensuring transparency and the ability to redeem 1:1 with USD.

Previously, Circle’s USDC was the most prominent MiCA-regulated option, but the emergence of USDG provides an alternative, increasing competition and diversifying the product offering. With a reach of 450 million consumers across 30 countries, USDG not only strengthens Paxos’ position but also reflects the trend of cryptocurrency adoption in a region with increasingly strict regulatory frameworks. Backing from companies like Kraken, Robinhood, and Mastercard also shows growing interest from both the traditional finance and crypto industries.

How did the crypto community react to this event?

According to posts on X, the crypto community has expressed excitement, with many viewing this as “a huge win” for crypto adoption in Europe.

Some are optimistic that USDG could drive a wave of stablecoin adoption in payments and investments, especially thanks to its strong network of partners. However, there are also concerns about its ability to compete with USDC and Tether (USDT), which account for nearly 90% of the global stablecoin market.

Some users have questioned the sustainability of USDG’s economic model, in which 97% of profits are distributed to network partners, which could impact the long-term value of the token. These reactions reflect both expectations and caution in the community.

Evaluation and Conclusion

The launch of Global Dollar (USDG) in the EU, backed by Kraken, Robinhood, and major partners, is a major step forward in bringing stablecoins into the European financial mainstream. With access to 450 million consumers and MiCA compliance, USDG not only increases competition but also accelerates the trend of digital finance.

However, its success depends on overcoming competitive challenges and achieving widespread adoption. In this context, both consumers and businesses need to proactively explore and leverage the potential of USDG, while Paxos must continue to maintain transparency and compliance to build trust in a rapidly evolving market.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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