What is Global Dollar (USDG)? A Complete Guide

Stablecoins have become the backbone of crypto trading – often making up more volume than Bitcoin or Ethereum.They’re how traders move value between chains, hedge against volatility, and settle quickly without banks in the middle.

But not all stablecoins are built the same way.Behind the $1 peg, there are differences in how reserves are held, who oversees them, and what legal frameworks apply. Understanding those differences matters if you hold significant value in stablecoins, or, simply want to know what gives them stability in the first place.

Understanding USDG: The Basics

USDG, short for Global Dollar, is a U.S. dollar-pegged stablecoin issued by Paxos Digital Singapore Pte. Ltd.It’s designed under the Monetary Authority of Singapore’s (MAS) single-currency stablecoin framework – a set of rules that governs how issuers hold reserves, manage redemptions, and publish transparency reports.Each USDG token is backed by cash and short-term cash-equivalent assets held in segregated accounts at approved financial institutions, including DBS Bank.

Users can redeem 1 USDG for 1 U.S. dollar through Paxos. Independent accountants review and attest to these reserves every month, and the reports are published publicly on Paxos’s USDG Transparency page.

Why It Matters

USDG joins a broader set of fiat-backed stablecoins already used across the market, such as USDT and USDC.What distinguishes USDG is its jurisdictional design — it’s issued out of Singapore by Paxos Digital Singapore Pte. Ltd., which operates under the supervision of the Monetary Authority of Singapore (MAS) as a licensed Major Payment Institution. That means USDG is designed to follow Singapore’s single-currency stablecoin framework, which sets out requirements for:

• Full 1:1 reserve backing

• Segregation of reserves from the issuer’s own funds

• Monthly independent attestations

• Defined redemption rights for users

For users, it represents another option to hold a U.S. dollar-pegged stablecoin structured under a defined regulatory framework, rather than one based solely on voluntary disclosures.

The Technology Behind USDG

USDG runs on public blockchains, including Ethereum (ERC-20), Solana (SPL), X Layer, and Ink — with Paxos indicating plans to expand to additional networks over time.This multi-chain setup makes USDG compatible with a wide range of DeFi protocols and wallets. The token’s smart contracts are open-source and verifiable on explorers like Etherscan. According to Paxos, these contracts have been independently audited to confirm that they operate as intended, supporting predictable behavior across supported networks.

How to Use USDG on OKX

OKX provides comprehensive USDG integration for a 100M+ global user base:

• Zero-Fee Conversion: Convert between USDG and USD/USDT/USDC without conversion fees on the OKX platform.

• Recurring Purchases: Set up automated recurring buys to dollar-cost average into USDG holdings over time.

• Liquid Trading Markets: Trade USDG against major cryptocurrencies with deep liquidity and tight spreads.

OKX users can earn up to 10% APY* on USDG held in OKX automatically - no staking, no hassle, just hold and earn weekly rewards.

Getting Started with USDG

For customers interested in accessing USDG, the process is straightforward:

1. Create an OKX Account: Complete the registration and verification process

2. Deposit Funds: Add USD or other supported currencies to your account

3. Convert to USDG: Use OKX's zero-fee conversion feature to acquire USDG

4. Start Using: Trade, transfer, or participate in earn products* with your USDG holdings

Things to Keep in Mind

All stablecoins carry some degree of risk. USDG’s reserves depend on the financial soundness of its custodians and the operational security of the underlying blockchain.Like other fiat-backed stablecoins, USDG can be frozen or seized if required by law enforcement in cases of sanctioned or unlawful use.It’s important to treat any stablecoin as a digital asset – not a bank deposit – and understand how its structure and oversight may differ across jurisdictions.

*APY may vary. USDG may not be available in all regions.This content is provided for informational purposes only and may cover services and products that are not available in your state. See OKX's US Risk & Compliance Disclosures for more information. It is not intended to provide (i) investment advice or an investment recommendation, (ii) an offer, solicitation, or inducement to buy, sell or hold digital assets, or (iii) financial, accounting, legal or tax advice. Crypto/digital assets, including stablecoins and NFTs, are subject to market volatility, involve a high degree of risk, can lose value, and are not FDIC insured. You should carefully consider whether trading or holding crypto/digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances. Information (including market data and statistical information, if any) appearing in this post is for general information purposes only. While all reasonable care has been taken in preparing this data and graphs, no responsibility or liability is accepted for any errors of fact or omission expressed herein. Certain cryptocurrencies, services, and products are not available to users located in the United States and may be restricted depending on the state in which you reside. Okcoin USA, Inc. ("OKX US") operates under the OKX brand and is a federally registered money service business and a state licensed money transmitter (NMLS ID: 1767779). Users of OKX US are subject to the restrictions and terms contained in the U.S. Terms of Service. Foreign entities affiliated with OKX US use the OKX brand to offer services and products to non-US users. US users are expressly prohibited from accessing any of those foreign products and services. © 2025 OKX. This article may be reproduced or distributed in whole or part, provided such use is non-commercial. Any reproduction or distribution of the entire article must also prominently state: "This article is © 2025 OKX and is used with permission." Permitted excerpts must cite the name of the article and include attribution, for example "Article Name, [author name if applicable], © 2025 OKX." No derivative works or other uses of this article are permitted.