Nonprofit organization Glo has introduced a new stablecoin named Glo Dollar that is backed by fiat currencies and low-risk securities to maintain a 1:1 peg against the US dollar. However, what makes Glo Dollar unique is that it generates yield from the interest earned on its backing assets, which is then used for charitable work aimed at reducing extreme poverty.

The co-founder of Glo, Jasper Driessens, hopes that people will use Glo Dollar as a replacement for traditional fiat accounts for savings and daily transactions, maximizing the yields generated for Glo's charitable goals.

Glo has partnered with Brale, a stablecoin infrastructure company that holds the necessary US money transmitter licenses, to comply with regulations. The success of Glo Dollar will depend on gaining adoption among both crypto and non-crypto users who are attracted to the philanthropic premise.