Paxos’ $3B USDG stablecoin launches on Arbitrum

Paxos-issued stablecoin Global Dollar (USDG) has launched on Arbitrum as the blockchain joins the Global Dollar Network.

According to an announcement shared with 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 would make USDG growth a strategic objective and add 100 million ARB to an incentive program to increase adoption. 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 the proceeds directed toward adoption and ecosystem development.

About $4 billion in stablecoins are currently held on Arbitrum, according to the Arbitrum Foundation. USDG, meanwhile, is the seventh-largest stablecoin by market capitalization, with about $3.09 billion in circulation, according to DeFiLlama data. Most of its supply is concentrated on X Layer, Robinhood Chain and Solana.