Paxos USDG Stablecoin Launches on Arbitrum Boosting DeFi and Tokenization

Paxos has launched its Global Dollar (USDG) stablecoin on the Arbitrum blockchain, marking the network's entry into the Global Dollar Network. USDG is natively issued on Arbitrum One and has already integrated with several decentralized finance (DeFi) protocols, including Fluid, Morpho, GMX, and Maple. Kraken will support USDG deposits and withdrawals, while Stargate will enable cross-chain transfers.

A proposal submitted to the ArbitrumDAO aims to make USDG growth a strategic objective, allocating 100 million ARB to an incentive program to boost adoption. The proposal also suggests deploying Arbitrum treasury assets to support USDG liquidity and offering integration support to businesses through the Arbitrum Foundation. As a Global Dollar Network partner, Arbitrum will share rewards from USDG activity, with proceeds directed toward adoption and ecosystem development.

USDG is the seventh-largest stablecoin by market capitalization, with approximately $3.09 billion in circulation. Most of its supply is currently on X Layer, Robinhood Chain, and Solana. Meanwhile, about $4 billion in stablecoins are held on Arbitrum, according to the Arbitrum Foundation.

The launch aligns with Arbitrum's expansion into tokenizing traditional assets, exemplified by Robinhood Chain, which supports 24/7 trading, lending markets, and perpetual futures exchanges. Standard Chartered recently highlighted the potential of Robinhood Chain, suggesting it could signal a shift in Arbitrum's economics, with the network receiving 10% of net protocol revenue generated by companies building on its infrastructure.