📌 Summary

With the launch of USDG, a fully regulated U.S. dollar stablecoin issued by Paxos and backed by Kraken, Polkadot has a critical opportunity to secure early support for what could become a major base-layer stablecoin across crypto and fintech.

Ethereum and Solana already support USDG natively. Polkadot — with its multichain structure and shared asset hub — risks being left behind unless we take proactive steps to integrate this asset into Asset Hub and parachain ecosystems.

🏛 Why the Treasury Should Act

USDG is:

• Fully regulated, issued by Paxos under MAS oversight (Singapore’s top-tier regulator).
• Exchange-native, with fiat on/off-ramps via Kraken and other partners.
• Already deployed on major L1s, including Ethereum and Solana.
• Likely to become part of the core settlement layer for DeFi and CeFi alike.

Polkadot should be a first-class destination for regulated stablecoins — and Treasury support can help reduce the friction of onboarding.

🔍 What Support Might Look Like

We propose the Treasury explore:

• Funding initial integration work, including runtime engineering or bridge setup if required.
• Engaging with Paxos/Kraken to understand technical and legal onboarding requirements.
• Allocating resources to bootstrap USDG liquidity or incentivize early adoption (on DEXs, parachains, etc.).
• Potential runtime upgrade to Asset Hub if native minting support is needed.

If Asset Hub is truly meant to host shared core assets, then USDG should be among the top priorities.

⚠️ Why This Matters Now

We’re seeing a shift toward compliant stablecoins with real-world utility — PYUSD, Circle’s USDC expansion, and now USDG. If Polkadot is not in that conversation, institutional adoption will drift elsewhere.

We have the tech. We have the ecosystem. But we need to act early and deliberately to make sure we don’t miss this wave.