USDG Global Dollar Stablecoin Enters EU Market Under MiCA Rules

Paxos has officially launched its Global Dollar (USDG) stablecoin in the European Union, claiming full compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation and gaining the support of prominent financial players including Kraken, Robinhood, and Mastercard.

Issued through a Finland-based entity, Paxos Issuance Europe OY, USDG enters the European market under the supervision of the Finnish Financial Supervisory Authority and the Monetary Authority of Singapore.

Paxos claims that USDG adheres to MiCA’s strict standards, including one-to-one redemption guarantees and rigorous reserve and audit requirements. A portion of USDG’s reserves is reportedly held in European banks to align with regulatory mandates.

Kraken’s Global Head of Consumer, Mark Greenberg, emphasized the stablecoin’s significance in the evolving financial landscape: “As stablecoins become core infrastructure for global finance, USDG stands out for its usability and growing ecosystem.”

USDG’s launch is part of the broader Global Dollar Network (GDN) initiative, an infrastructure project backed by more than 20 financial and fintech institutions. Founding members include Kraken, Robinhood, Anchorage Digital, and Worldpay. Mastercard also recently joined the initiative, marking a growing interest in stablecoins among legacy financial institutions.

Platforms such as Gate.io, Coinmetro, SwissBorg, Zodia Custody, Orbital, Hercle, CoinsPaid, and Bitnet have already integrated USDG into their offerings. This wide network aims to support a more seamless and regulated stablecoin experience across global markets.

Walter Hessert, Paxos’ Head of Strategy, noted that institutional and retail demand for stablecoins continues to rise: “This isn’t just about crypto anymore, stablecoins are evolving into critical financial infrastructure.”

The timing of the launch is strategic. According to RWA.xyz and DeFiLlama, the stablecoin market has expanded significantly in 2025, with total capitalization rising from $239 billion in June to over $253 billion by the end of the month. Yield-bearing stablecoins have also seen rapid adoption, growing from $1.5 billion to $11 billion in circulation since the start of 2024.

Meanwhile, a recent report by Coinbase highlighted that global interest in using stablecoins has tripled over the past year. With over $94 billion in stablecoin payments settled between January 2023 and February 2025, stablecoins are becoming an increasingly accepted part of mainstream financial infrastructure.