PANews reported on July 1 that according to The Block, on Tuesday, Paxos launched the stablecoin USDG for users across the European Union. This is a stablecoin pegged to the US dollar supported by a consortium including Robinhood, Kraken, Galaxy Digital and Anchorage Digital. USDG is issued by Paxos' European entity Paxos Issuance Europe OY, which is regulated by the Finnish Financial Supervisory Authority and follows the EU's Crypto Asset Market Regulation framework. Paxos deposits part of its cash reserves in European banks and promises 1:1 redemption to meet MiCA's asset reserve and audit requirements. Despite the tightening of EU crypto regulation, the market demand for US dollar stablecoins has increased significantly. Walter Hessert, head of strategy at Paxos, said that the stablecoin issued by Paxos can be traded on platforms such as Kraken, Gate, CoinsPaid and Zodia Custody, and circulates on Ethereum, Ink and Solana blockchains, providing 450 million EU residents with a compliant US dollar stablecoin.