Paxos USDG Stablecoin Launches on Arbitrum with Major Integrations
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 (DeFi) 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 to an incentive program to boost adoption. The proposal also suggests deploying Arbitrum treasury assets to support $USDG liquidity, with businesses integrating the stablecoin eligible for support from the Arbitrum Foundation. As a partner in the Global Dollar Network, Arbitrum will share in rewards generated by $USDG activity, directing proceeds toward adoption and ecosystem development.
Currently, about $4 billion in stablecoins are held on Arbitrum, with $USDG ranking as the seventh-largest stablecoin by market capitalization, boasting approximately $3.09 billion in circulation. Most of its supply is concentrated on X Layer, Robinhood Chain, and Solana.
The launch comes as Arbitrum expands beyond crypto-native applications to support financial platforms bringing traditional assets on-chain. A notable example is Robinhood Chain, which launched its public mainnet in July after a public testnet debuted in February. The Ethereum layer-2 network, built using Arbitrum, is designed to support tokenized real-world and digital assets, including 24/7 trading, lending markets, and perpetual futures exchanges.
Last month, Standard Chartered suggested that Robinhood Chain could signal a shift in Arbitrum’s economics, with the network receiving 10% of net protocol revenue generated by companies building on its infrastructure. The bank forecast that these economics, combined with growing asset tokenization, could help push $ARB to $10 by 2030. Standard Chartered expects tokenized assets to reach $4 trillion by the end of 2028, with Arbitrum among the potential beneficiaries.