Arbitrum joins the Paxos-led stablecoin alliance, USDG launches on Arbitrum

According to CoinDesk, Arbitrum announced its participation in the stablecoin alliance Global Dollar Network led by Paxos, with its issued stablecoin USDG going live on Arbitrum on Tuesday.

This integration covers trading, lending, and payment scenarios, with partners including Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero, and Kraken, while Uniswap and Fhenix will be integrated later.

USDG is issued by Paxos, supported by a 1:1 dollar reserve, with cross-network circulation exceeding $3 billion. The Global Dollar Network has over 150 partners, including Robinhood, Kraken, Mastercard, and OKX. Its model distributes the earnings generated from USDG reserves to partners that promote adoption, rather than being solely enjoyed by the issuer. Currently, there are about $3.8 billion in stablecoins on the Arbitrum network, with approximately 60% being Circle's USDC, and previously, Arbitrum was unable to directly share the reserve earnings of these tokens.

Brendan Ma, the investment strategy director of the Arbitrum Foundation, stated that with USDG, Arbitrum and ecosystem builders can now share the benefits of growth.