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Consortium-backed stablecoins challenge traditional issuers

The Global Dollar Network's USDG stablecoin represents a shift toward consortium-owned models that distribute yield back to partners rather than keeping it locked with a single issuer.

The argument

The speaker argued that stablecoins have become a commodity, and instead of launching a proprietary token, Robinhood joined a consortium (including Kraken, OKX, and Bullish) to share the net interest margin (NIM) generated by the reserve assets.

The thesis, stress-tested
✓ What validates it
  • Integration and launch of USDG for Robinhood's retail customer base
  • Growth in the total circulating supply of USDG relative to competitors
▸ Risks discussed
  • Regulatory scrutiny regarding the distribution of stablecoin yield to retail customers
  • Dominance of entrenched stablecoins like USDT and USDC limiting USDG adoption
Hear it yourself
"So actually, we joined a consortium. It's called the Global Dollar Network. It's issuing a stablecoin called USDG. And basically, it's a consortium of big companies, Kraken, OKX, Bullish and other are part of it. And so the idea was, the stablecoin is is going to become a commodity."
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HOOD: Consortium-backed stablecoins challenge traditional issuers · Zortix