Paxos' $3B USDG Stablecoin Goes Live on Arbitrum
Key Takeaways
- •Paxos' Global Dollar (USDG) stablecoin is now natively issued on Arbitrum One following the network's admission to the Global Dollar Network.
- •The launch includes integrations with DeFi protocols such as Fluid, Morpho, GMX and Maple, with Kraken handling deposits and withdrawals and Stargate enabling cross-chain transfers.
- •An ArbitrumDAO proposal would designate USDG growth as a strategic objective and allocate 100 million ARB tokens to an incentive program, subject to governance approval.
- •USDG ranks as the seventh-largest stablecoin with about $3.09 billion in circulation, while Arbitrum currently holds roughly $4 billion in stablecoins according to the Arbitrum Foundation.
- •Standard Chartered has forecast that Arbitrum's tokenization push, including infrastructure like Robinhood Chain, could lift ARB to $10 by 2030 as tokenized assets reach $4 trillion by the end of 2028.
Paxos' $3B USDG Stablecoin Goes Live on Arbitrum
Global Dollar ($USDG), the stablecoin issued by Paxos, has gone live on Arbitrum after the blockchain joined the Global Dollar Network. Stablecoins such as $USDG are designed to track the value of the US dollar and serve as a primary medium of exchange and source of collateral across onchain markets, making them core building blocks of onchain financial activity.
According to an announcement shared Cointelegraph, $USDG is natively issued on Arbitrum One, with integrations across decentralized finance protocols including Fluid, Morpho, GMX and Maple. Kraken will support deposits and withdrawals, while Stargate will enable transfers between Arbitrum and other blockchains.
A proposal submitted to the ArbitrumDAO, the network's token-holder governance body, would make $USDG growth a strategic objective and add 100 million $ARB to an incentive program aimed at increasing adoption. The measures would take effect only if approved through the DAO's governance process. The proposal also calls for deploying Arbitrum treasury assets to support $USDG liquidity, while businesses integrating the stablecoin can apply for 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 adoption and ecosystem development — an arrangement that ties Arbitrum's share directly to how much stablecoin activity takes place on its chain.
About $4 billion in stablecoins are currently held on Arbitrum, according to the Arbitrum Foundation. $USDG is the seventh-largest stablecoin by market capitalization, with roughly $3.09 billion in circulation, according to DeFiLlama data. Most of its supply is concentrated on X Layer, Robinhood Chain and Solana, a footprint the Arbitrum integration now extends.
Arbitrum targets growing tokenization market
The $USDG launch comes as Arbitrum expands beyond crypto-native applications and becomes infrastructure for financial platforms bringing traditional assets onchain. Stablecoins supply the dollar liquidity that trading and settlement on such platforms depend on.
The most prominent example is Robinhood Chain, which launched its public mainnet in July after a public testnet debuted in February. The Ethereum layer-2 network is built using Arbitrum and designed to support tokenized real-world and digital assets, including 24/7 trading, lending markets and perpetual futures exchanges.
Last month, Standard Chartered said 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 those economics, combined with growing asset tokenization, could help push $ARB to $10 by 2030, roughly 70 times its price at the time. Standard Chartered expects tokenized assets to reach $4 trillion by the end of 2028, with Arbitrum among the potential beneficiaries as more assets move onchain.
