Arbitrum Joins Paxos Stablecoin Network for USDG Expansion

Arbitrum, a leading Ethereum layer-2 network, has joined the Global Dollar Network, a stablecoin consortium spearheaded by Paxos. This move allows Arbitrum to share in the reserve income generated by USDG, Paxos's dollar-backed stablecoin, which has already been integrated into the Arbitrum ecosystem.

USDG launched on Arbitrum on October 6 and is being incorporated into various services, including trading, lending, and payments platforms like Fluid, Morpho, GMX, Maple, and others. With over $3 billion in circulation across multiple networks, USDG is backed one-to-one by dollar reserves and is supported by more than 150 partners, including major players like Robinhood, Kraken, and Mastercard.

Brendan Ma, head of investment strategy at the Arbitrum Foundation, highlighted that this partnership enables Arbitrum and its developers to share in revenue tied to USDG's growth. Currently, approximately $3.8 billion worth of stablecoins are in circulation on Arbitrum, with USDC accounting for about 60% of that total.

A recent governance proposal submitted to ArbitrumDAO aims to designate USDG growth as a strategic priority. The proposal includes allocating 100 million ARB tokens to an incentive program and utilizing foundation assets to support USDG liquidity.