Paxos USDG Stablecoin Launches on Arbitrum with $100M Incentive

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

A proposal submitted to the ArbitrumDAO aims to make USDG growth a strategic objective, allocating 100 million ARB tokens to an incentive program to boost adoption. The proposal also suggests deploying Arbitrum treasury assets to support USDG liquidity. Businesses integrating the stablecoin can seek support from the Arbitrum Foundation. As a partner in the Global Dollar Network, Arbitrum will share in rewards generated by 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, according to DeFiLlama data. Most of its supply is currently concentrated on X Layer, Robinhood Chain, and Solana. Arbitrum itself holds about $4 billion in stablecoins, highlighting the network's growing role in the stablecoin ecosystem.

The launch of USDG on Arbitrum coincides with the network's expansion into tokenization of traditional assets. Robinhood Chain, built using Arbitrum, is a notable example, designed to support tokenized real-world and digital assets, including trading, lending markets, and perpetual futures exchanges. Standard Chartered has forecasted that tokenized assets could reach $4 trillion by the end of 2028, positioning Arbitrum among the potential beneficiaries as more assets move onchain.