The trading platform has just launched an automatic interest accrual feature for USDG, allowing users to use USDG as collateral and receive interest without any fees, starting when holding a minimum of 1 USDG, with interest paid weekly to the Capital account.
USDG is issued by Paxos Digital Singapore Pte. Ltd. and has been approved by the Monetary Authority of Singapore as a major settlement institution, in compliance with the upcoming stablecoin regulatory framework; this feature optimizes Capital efficiency for scenarios such as collateralized lending and margin trading.
- Automatic interest accrual for USDG: starting from 1 USDG, no fees, weekly interest payments.
- USDG is issued by Paxos Digital Singapore, approved by the Monetary Authority of Singapore.
- Benefits: stable, safe, improving Capital efficiency in borrowing and depositing.
How does the automatic interest accrual feature with USDG work?
Short answer: Users only need to hold a minimum of 1 USDG in their account on the platform to start accumulating interest automatically, interest is added to the Capital account weekly, with no additional fees.
Analysis: The feature works automatically based on the USDG balance in the user's wallet; no manual registration required. Weekly interest payments allow users to see a recurring income stream and make it easier to manage profits compared to longer-term interest payment methods.
Practical application: Since there is no subscription limit, users can transfer USDG between products (e.g. collateral, margin) to optimize yield while maintaining the liquidation needed for trading.
What are the benefits of USDG as collateral for users?
Short answer: USDG as collateral both increases Capital efficiency and generates additional income through automatic interest, suitable for mortgage lending and margin trading.
Analysis: By using USDG as collateral, users take advantage of the stable cryptocurrency value to unlock liquidation, reduce the need to sell assets and maintain market position. Interest automatically creates an income stream to offset borrowing costs or volatility risks.
In margin scenarios, earning interest on USDG helps offset financing fees and improve return on Capital , while enhancing the sustainability of long-term trading strategies.
Is USDG legal and safe?
Short answer: USDG is issued by Paxos Digital Singapore Pte. Ltd. and has been approved by the Monetary Authority of Singapore as a major settlement institution, meeting the requirements of the upcoming stablecoin framework.
Analysis: The approval of Paxos Digital Singapore by Singapore’s regulatory authority shows that USDG complies with standards of risk management, transparency, and approval of digital payment operations. This increases the trust of users in USDG as a payment instrument and store of value.
Users should still check the custody and account protection terms on the trading platform they use, as safety depends on the security measures, risk management and custody policies of each intermediary.
What are the participation conditions, fees and interest payment schedule?
Short answer: Minimum requirement is to hold 1 USDG, no additional fees, interest is paid directly to the Capital account weekly, and unlimited subscriptions.
Analysis: Low threshold of 1 USDG makes it accessible to all users; no fees encourage users to hold USDG on the platform to earn interest. Weekly interest payment schedule creates cash flow stability for users and is convenient for short-term financial planning.
Note: The actual interest rate, withdrawal conditions and interest recording time may be specified in detail in the official announcement of the platform; users are advised to carefully XEM the terms before using USDG as collateral.
Frequently Asked Questions
What do I need to do to start earning interest on USDG?
Start by holding at least 1 USDG in your account on the platform; the automatic interest accrual feature will be activated and the interest will be added to your Capital account weekly according to the platform's official announcement.
Is there a fee for using the interest accrual feature?
According to the announcement, the feature does not charge any additional fees; however, users should check other fees related to trading, withdrawals or collateral as prescribed by the platform.
Is USDG suitable as collateral for margin trading?
USDG is suitable due to its stability and interest-generating ability, which helps improve Capital efficiency; users need to consider the platform's collateral ratio and risk management policy.
Is USDG regulated by any agency?
USDG is issued by Paxos Digital Singapore Pte. Ltd. and approved by the Monetary Authority of Singapore as a major settlement institution, meeting the regulatory framework requirements for Singapore's stablecoins.
