Paxos Launches USDG Stablecoin Across European Union Under MiCA Rules

Highlights:

• Paxos has launched a stablecoin across the EU under MiCA rules.
• The stablecoin now meets strict EU rules with reserves held in European banks and full dollar redemption guaranteed.
• Platforms like Kraken and Gate now offer USDG stablecoin as demand for compliant digital dollars grows in the EU.

Paxos has launched its USDG stablecoin in the European Union. The announcement confirmed the stablecoin’s compliance with the Markets in Crypto-Assets framework in the EU. Paxos will issue USDG in Europe through its Finnish entity, Paxos Issuance Europe. The Financial Supervisory Authority of Finland will supervise the operations of the stablecoin under MiCA. Over 450 million consumers across 30 countries can now access USDG legally.

Paxos launches MiCA-compliant USDG stablecoin in EU

Global Dollar $USDG, a stablecoin issued by regulated fintech firm @Paxos, is now available in the EU and is fully compliant with the Markets in Crypto-Assets (MiCA) regulation, according to Walter Hessert, head of strategy at…

— CoinNess Global (@CoinnessGL) July 1, 2025

USDG is not a new stablecoin. Paxos introduced he stablecoin in late 2024, and it has been live on Ethereum, Solana, and Kraken’s Ink blockchains. This is, however, the first official rollout in a European regulatory framework. The stablecoin is pegged to the U.S. dollar at one to one and is redeemable at the same value. The launch will help to satisfy the growing number of users seeking regulated stablecoins in Europe.

Paxos stated that the EU version of USDG will remain distinct from the version issued in Singapore. The Singapore-based version still operates under the supervision of the Monetary Authority of Singapore (MAS). Paxos plans to remain compliant with both frameworks during the expansion.

MiCA Compliance Strengthens Paxos Position in Europe

Paxos designed the USDG stablecoin to comply with the strict requirements of MiCA concerning reserve support, audit, and custody. It has, as part of compliance, now reserves of USDG with reliable banking partners in Europe. The company has also made it clear that all tokens remain fully redeemable for U.S. dollars, regardless of location. This guarantees value and security for holders across different jurisdictions.

Platforms including Kraken, Gate, Coinmetro, Zodia Custody, SwissBorg, and Orbital now support USDG. These platforms will help expand access to USDG across the EU’s crypto market. According to Paxos, regulated access to a dollar-backed stablecoin is important for both consumers and businesses in Europe. The company also confirmed that it is working closely with MAS to ensure a smooth regulatory transition in Asia.

The Global Dollar Network (GDN) is a project that is driven by its USDG stablecoin in an attempt to enhance the application of stablecoins globally. Such big names as Robinhood, Anchorage Digital, Kraken, and Bullish are among the current GDN partners. The network is devoted to the actual uses of stablecoins in real payments and finance.

Stripe also recently teamed up with Paxos to enable crypto payments with USDG and PayPal PYUSD. In May, Mastercard added that it would also support USDG on cross-border payments using its Move network. Fiserv, too, made an entry as it announced its stablecoin, FIUSD, which is going to use Paxos infrastructure.

USDG Stablecoin Joins a Crowded Yet Growing Market

The USDG stablecoin joins an already competitive market with USDT and USDC dominating. The two stablecoins share almost the entire global market of $160 billion. Nevertheless, regulated alternatives such as USDG are catching up, particularly in areas where there are definite guidelines.

According to CoinMarketCap data, the market capitalization of the stablecoin stands at approximately $322.76 million. The stablecoin will complement a range of digital assets at Paxos, including USDP, PYUSD, and PAXG. Paxos is considering operating in many jurisdictions and broadening global avenues.