How Paxos Mints and Redeems USDG for Institutional Clients

Paxos allows institutional clients to convert U.S. dollars to the Global Dollar (USDG) and redeem USDG back to U.S. dollars after completing Global Dollar Network onboarding and KYC. Organizations use the Paxos Dashboard Convert tool for one-off transactions, Automate rules for recurring or deposit-triggered conversions, or orchestration APIs for programmatic flows.

To access primary mint and redeem functions an organization must open a Paxos institutional account, enroll as a Global Dollar Network partner and complete identity and organizational onboarding. Once a Paxos profile is approved and funded with USD or receives inbound USDG, teams can use the Dashboard Convert screen, create Automate rules, or deploy orchestration rules via the API.

The Dashboard Convert flow is a manual control surface. Operators choose Mint or Redeem, select the profile that holds the balance, pick the stablecoin (USDG or other Paxos-issued tokens), choose a destination — either a Paxos profile or a registered external account on a supported network — enter the amount and confirm the transaction. Convert also supports swaps between stablecoins held on the same profile.

Automate in the Dashboard supports two recurring modes. Convert & Hold converts an incoming deposit and keeps the resulting asset on the same profile. Convert & Transfer converts and then moves funds to another profile, a registered external bank account or a registered external wallet. Automate generates deposit instructions tied to each rule that can be reused for repeated conversions.

Developers can use orchestration APIs to create rule-based mint and redeem flows. API rules specify a source asset and network and a destination profile, bank account or registered crypto address. Paxos returns deposit instructions and a rule-specific crypto address; sending fiat or tokenized USD to those instructions triggers the conversion and delivery. Redeem orchestrations require an approved fiat bank account; the bank account must show an APPROVED status before Paxos will wire out redeemed USD. Sandbox environments are available for testing.

Paxos documentation states there are no issuer fees for minting or redeeming Paxos-issued USDG and PYUSD, and that tokens are redeemable 1:1 against reserves held in U.S. dollar deposits, U.S. Treasuries and cash equivalents, supported by monthly transparency reports and attestations. Global Dollar Network materials dated July 21, 2026 list more than 150 enterprise partners and report USDG above $3 billion in market capitalization. A third-party on-chain snapshot showed about $3.21 billion total supply as of September 26, 2026; Paxos’s attestations are the issuer’s official reserve disclosures. Paxos Digital Singapore issues USDG under supervision of the Monetary Authority of Singapore, with European issuance covered under FIN-FSA oversight and MiCA compliance according to network materials.

Operational constraints include institutional gating of primary issuance and redemption (retail wallets cannot self-serve mint USDG directly at Paxos), entity-level enablement of networks and bank rails, required registration of external crypto addresses, and distinct conversion lanes per network. Primary issuance and redemption at the Paxos issuer create or destroy supply on Paxos’s books; secondary-market trades do not change issuer supply. Paxos documentation recommends mapping onboarding steps and testing one Convert mint and one Automate or orchestration rule in sandbox before sending live institutional wires.