Paxos USDG Stablecoin Launches on Arbitrum Network

Update (Oct 6, 13:28 UTC): Arbitrum has integrated the Paxos-led Global Dollar Network, bringing the USDG stablecoin to the Ethereum layer-2 network.

Paxos-issued stablecoin Global Dollar (USDG) has launched natively on Arbitrum One as the blockchain joins the Global Dollar Network, according to an announcement shared with Cointelegraph.

The stablecoin's deployment features integrations across several decentralized finance protocols, including Fluid, Morpho, GMX, and Maple. Additionally, Kraken will support deposits and withdrawals, while Stargate will enable cross-chain transfers between Arbitrum and other blockchains.

Incentive Program and Governance Proposal

A proposal submitted to the ArbitrumDAO aims to make USDG growth a strategic objective by adding 100 million ARB to an incentive program designed to increase adoption. The proposal also calls for deploying Arbitrum treasury assets to support USDG liquidity. Businesses integrating the stablecoin can apply for direct support from the Arbitrum Foundation.

As a Global Dollar Network partner, Arbitrum will share in rewards generated by USDG activity on the network, with proceeds directed toward ecosystem development and adoption.

Market Standing and Infrastructure

According to the Arbitrum Foundation, about $4 billion in stablecoins are currently held on Arbitrum. USDG ranks as the seventh-largest stablecoin by market capitalization, boasting roughly $3.09 billion in circulation, based on DeFiLlama data. The majority of its supply is currently concentrated on X Layer, Robinhood Chain, and Solana.

Key facts

• Paxos-issued Global Dollar (USDG) launched natively on Arbitrum One.
• An ArbitrumDAO proposal adds 100 million ARB to support USDG adoption and liquidity.
• Integrations include DeFi protocols Fluid, Morpho, GMX, and Maple.
• USDG holds about $3.09 billion in circulation, making it the seventh-largest stablecoin.