Global Dollar Stablecoin Issued on Solana as Network Closes in on New All-Time High

Solana’s memecoin renaissance may be coming to a halt, but the blockchain has still demonstrated impressive growth in other DeFi industries, too.

One such sector has been stablecoins, something that blockchain innovators Paxos are looking to leverage.

The team’s latest product, the Global Dollar (USDG), is now officially available on the Solana network. 

Related: Market Meltdown: Why is SOL, XRP, DOGE Plummeting Today?

What is USDG?

USDG is a USD-pegged digital currency backed 1:1 by cash and cash equivalents in accounts that are reviewed independently every month. The token is regulated by Singapore’s primary financial watchdog and can also be minted and transferred across Ethereum. 

The stablecoin is another entry into the fast-growing tokenisation market, which has seen major institutional players like BlackRock and Franklin Templeton dip their toes into.

So far, Paxos and the Global Dollar Network has partnered with fintech companies like alfred, Caliza and Noah. 

Lily Liu, President of the Solana Foundation, commented on the launch of USDG on the Solana blockchain.

The launch of USDG on Solana will accelerate stablecoin adoption for payments and finance at a global scale, and unlock new opportunities for businesses and retail users alike.

Lily Liu, President of the Solana Foundation

Stablecoin Market Capitalization Moves Toward Record Highs on Solana

Meanwhile, the issuance of USDG on the Solana network has pushed its stablecoin market capitalization back toward its all-time high. 

According to DeFiLlama, the value of stablecoins within Solana’s ecosystem has swelled to over US $11.6b (AU $18.3b), closing in on the February heights of US $12b (AU $19b).

Despite the market cooldown over the past few days, Solana’s stablecoin cap has steadily moved upward since dropping from its February 12 ATH. 

Solana’s increasing position as a home for stablecoin activities will help breathe life into its ecosystem following the drop-off of memecoins since Donald Trump’s election.