Arbitrum has joined the Global Dollar Network as Paxos-issued USDG goes live across the Ethereum layer-2 network, a move that gives the ecosystem and its builders access to revenue sharing tied to stablecoin growth.

USDG is issued by Paxos, backed one-for-one with dollar reserves, and has a reported circulation of more than $3 billion.

USDG Rolls Out Across Arbitrum DeFi

USDG launched on Arbitrum with support from Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero, and Kraken. Uniswap and Fhenix plan to add support later. The integrations cover trading, lending, payments, and cross-chain transfers across the network — the core activities where stablecoin liquidity is put to work in decentralized finance.

The Global Dollar Network has grown to more than 150 partners, including Robinhood, Kraken, Mastercard, and OKX. Under its model, partners that support USDG adoption receive a share of reserve-based rewards. A recent Open USD stablecoin launch showed another consortium adopting a broad partner structure for digital dollar distribution.

DefiLlama data cited in the announcement puts Arbitrum's total stablecoin supply at about $3.8 billion, with Circle's USDC representing roughly 60% of that total. USDG's reported circulation is already approaching the size of Arbitrum's entire stablecoin supply, so the token enters the with existing scale. Arbitrum does not directly receive the reserve income generated by those existing stablecoins. USDG changes that setup by sharing part of its reserve economics across participating partners.

Brendan Ma, head of investment strategy at the Arbitrum Foundation, said the structure gives the network and builders exposure to growth.

DAO Proposal Targets USDG Growth

A governance proposal published on Tuesday asks ArbitrumDAO to make USDG expansion a strategic priority. The proposal also seeks an allocation of 100 million ARB for the DRIP incentive program and calls for treasury assets to support USDG liquidity. The network's move comes as a Visa stablecoin settlement pilot also showed rising use of digital dollars in payments.

The proposal arrives as stablecoin groups compete through shared distribution models. Open Standard has built around OpenUSD with support from payments and commerce firms, while Europe's Qivalis has brought together 37 banks around a separate digital euro effort.

Arbitrum has also gained revenue exposure through Robinhood Chain, which uses its technology. Robinhood agreed to share part of the revenue generated by user activity with the Arbitrum ecosystem, and recent reporting on Robinhood's tokenized stock plans points to the company's wider blockchain push.

The USDG launch adds another revenue route tied directly to activity on Arbitrum. The network now has a stablecoin partner model that links reserve rewards with adoption, while its DAO considers incentives designed to increase USDG liquidity and use. Whether ArbitrumDAO token holders approve the 100 million ARB request, and when Uniswap and Fhenix bring their planned support online, are the next markers to watch in USDG's expansion.