Paxos Brings $3B USDG Stablecoin to Arbitrum

Paxos-issued Global Dollar (CRYPTO: $USDG) has launched natively on Arbitrum One (CRYPTO: $ARB) as the Ethereum (CRYPTO: $ETH) layer-2 network joins the Global Dollar Network.

The launch gives USDG access to Arbitrum's decentralized finance ecosystem, with Fluid (CRYPTO: $FLUID), Morpho (CRYPTO: $MORPHO), GMX (CRYPTO: $GMX) and Maple (CRYPTO: $SYRUP) among the protocols integrating the stablecoin.

Kraken will support USDG deposits and withdrawals, while Stargate (CRYPTO: $STG) will provide transfers between Arbitrum and other networks.

The move could also bring a significant push for adoption. A proposal submitted to the ArbitrumDAO calls for 100 million ARB tokens to be added to an incentive program designed to expand USDG usage. The proposal also suggests using assets from Arbitrum's treasury to support liquidity for the stablecoin.

Businesses building USDG into their products will also be able to seek support from the Arbitrum Foundation.

Arbitrum is joining the Global Dollar Network as a partner, meaning it will receive a share of rewards generated by USDG activity on the network. Those proceeds are expected to be directed toward further adoption and ecosystem development.

The launch comes as Arbitrum is becoming increasingly involved in the tokenization of traditional assets. About $4 billion worth of stablecoins are currently held on the network, according to the Arbitrum Foundation.