Huma, a major player in global payments, has joined the Global Dollar Network (GDN). This network aims to make stablecoins—cryptocurrencies pegged to the value of a stable asset like the US dollar—more widely used.
What is the Global Dollar Network?
The GDN is a group of big companies working together to promote stablecoins. It’s led by Paxos and uses their stablecoin, USDG. Other members include well-known names like Robinhood, Kraken, and Anchorage. USDG is designed to meet upcoming regulations in Singapore and works on several blockchains, including Solana, Ethereum, and others. Solana is a favorite because of its speed and efficiency. Already, billions of dollars worth of stablecoin transactions happen daily on Solana.
Why is this a Big Deal?
Stablecoins are becoming a crucial part of modern finance, especially for fast payments and international transfers. The GDN aims to make stablecoins even better by:
- Sharing the profits: Network members who use USDG get a share of the profits.
- Building trust: USDG is designed to meet strict regulations, making it more appealing to businesses.
- Making it easier to join: Companies can use the benefits of stablecoins without creating their own.
- Working together: The GDN encourages collaboration to find new ways to use stablecoins.
Huma’s co-founder, Erbil Karaman, highlighted the need for a network effect to drive wider stablecoin adoption, emphasizing that single-issuer stablecoins lack this crucial element. Huma’s payment network already handles billions of dollars in transactions annually.
Paxos’s Ronak Daya praised Huma’s experience in global payments and its contribution to the network’s ability to efficiently move money across borders. He highlighted USDG’s potential in areas like remittances, where Huma addresses key challenges related to liquidity and pre-funding.
The Future of Finance
With increasing regulatory clarity and growing stablecoin adoption, Huma’s partnership with the GDN positions it to benefit from the expanding financial infrastructure landscape. The company’s PayFi network aims to bridge traditional and decentralized finance, enabling real-time settlements and sustainable yields backed by payment flows. This collaboration signifies a significant step towards a more efficient and accessible global financial system.
