Arbitrum Adopts USDG as Default Stablecoin on Global Dollar Network

Arbitrum has officially joined the Global Dollar Network, marking a significant step in the integration of Paxos-issued USDG as its default stablecoin. Announced on October 5, this move positions USDG as the primary dollar for decentralized finance (DeFi) activities on Arbitrum One, including liquidity, lending, derivatives collateral, and institutional settlements. With nearly 3 billion transactions processed across almost 90 million addresses, Arbitrum’s ecosystem is well-positioned to benefit from a regulated stablecoin amid growing competition among stablecoin consortiums.

The network outlined four key integration paths for USDG: earning through eligible vaults, using it as margin and collateral, quoting and settling across spot and DEX pools, and holding it for treasury, payments, and cross-border transfers. At launch, major DeFi platforms like Fluid, Morpho, GMX, Maple, and Kraken are already integrating USDG, with more providers such as Uniswap and Fhenix expected to follow. This reserve-sharing arrangement mirrors an earlier partnership with OKX within the Global Dollar Network.

Unlike traditional stablecoins, the Global Dollar Network distributes reserve income among partners that drive adoption. As a Network partner, Arbitrum now participates in these economics, with eligible builders receiving rewards based on USDG activity. A recent governance proposal suggests adding 100 million ARB tokens to the DRIP incentive program to boost USDG adoption.

USDG is issued by Paxos Digital Singapore and Paxos Issuance Europe, both supervised by the Monetary Authority of Singapore and FIN-FSA respectively, ensuring compliance with MiCA regulations. With over $3 billion of USDG in circulation and more than 150 partners, Arbitrum’s addition extends the stablecoin’s reach across Ethereum, Ink, Mantle, Robinhood Chain, Solana, and X Layer, highlighting a broader trend in stablecoin alliances competing for distribution and reserve economics.