Arbitrum Chooses Paxos USDG as Ecosystem Dollar with DeFi Support

Arbitrum has officially adopted Paxos’ USDG as its ecosystem dollar, with native issuance on Arbitrum One starting October 6, 2026. The launch includes support from DeFi platforms Fluid, Morpho, GMX, and Maple, along with exchange backing from Kraken. Approximately 7 million ARB in incentives have been allocated to encourage USDG adoption within the Arbitrum ecosystem.

The key highlight of this rollout is the native issuance of USDG on Arbitrum One, rather than being ported from another network. This move aims to position USDG as a core settlement and liquidity asset across Arbitrum’s DeFi applications. The stablecoin will function as collateral and the unit in which trades settle, with GMX offering a launch boost program targeting over 8% APR on specific USDG-paired liquidity pools for the first eight weeks.

USDG is not a new stablecoin, having been deployed on several chains prior to this expansion. It boasts a circulating supply and market capitalization estimated between $3.1 billion and $3.5 billion. Paxos backs USDG 1:1 with US dollar cash and equivalents and provides monthly attestations, with oversight from the Monetary Authority of Singapore and the EU’s MiCA framework.

The Global Dollar Network, which includes over 150 partner organizations, shares revenue generated from yields on USDG’s reserves. Kraken’s involvement simplifies the process of moving USDG on and off Arbitrum. For users, the immediate benefits include high APRs on GMX pools and ARB incentives, though the latter are temporary. The revenue-sharing model of the Global Dollar Network provides a long-term incentive for partners to continue promoting USDG.