Paxos has launched its USDG stablecoin on Arbitrum, marking the blockchain’s integration into the Global Dollar Network. This expansion allows USDG to be natively issued on Arbitrum One, connecting it seamlessly with several decentralized finance (DeFi) protocols.
Integrations and ecosystem expansion
USDG’s launch on Arbitrum is accompanied by integrations with Fluid, Morpho, GMX, and Maple, strengthening its accessibility throughout the DeFi ecosystem. Major exchange platform Kraken will support deposits and withdrawals for USDG on Arbitrum, enhancing user access. Additionally, Stargate will enable USDG transfers between Arbitrum and other blockchains, further broadening the stablecoin’s reach.
A recently submitted proposal to the ArbitrumDAO seeks to set USDG growth as a strategic goal. If approved, the initiative will allocate 100 million ARB tokens to an incentive program designed to boost the adoption of USDG. The proposal also includes plans to deploy assets from the Arbitrum treasury to back USDG liquidity. The Arbitrum Foundation will offer support to businesses that integrate the stablecoin.
Partners on the Global Dollar Network, including Arbitrum, will share in rewards generated by USDG activity. The network plans to direct these proceeds toward ecosystem growth and increasing adoption.
Stablecoin and asset growth
Arbitrum currently holds around $4 billion in stablecoins, according to figures published by the Arbitrum Foundation. USDG stands as the seventh-largest stablecoin by market capitalization, with approximately $3.09 billion in circulation based on DeFiLlama data. Its supply is primarily concentrated on X Layer, Robinhood Chain, and Solana.
The addition of USDG on Arbitrum highlights the blockchain’s ongoing evolution into infrastructure for financial platforms that are bringing traditional assets onchain, expanding beyond its original focus on crypto-native applications.
Mini dictionary: ArbitrumDAO, a decentralized autonomous organization, manages governance decisions such as proposals, incentive programs, and strategic objectives for the Arbitrum blockchain ecosystem.
| Network | Total Stablecoins Held | Leading Stablecoin (Market Cap) |
|---|---|---|
| Arbitrum | $4 billion | USDG ($3.09 billion) |
| Solana | Not specified | USDG (among others) |
| X Layer | Not specified | USDG |
| Robinhood Chain | Not specified | USDG |
Role of Robinhood Chain and new economic models
Robinhood Chain, notable for its integration of tokenized real-world and digital assets, launched its public mainnet in July. Built on Arbitrum’s technology, Robinhood Chain enables applications for 24/7 trading, lending markets, and perpetual futures exchanges.
Last month, Standard Chartered reported that Robinhood Chain could mark a shift in Arbitrum’s economic structure, as the network may receive 10% of net protocol revenue from companies utilizing its infrastructure. The bank suggested that these economics, coupled with a trend towards asset tokenization, may position ARB for significant long-term growth.
Standard Chartered forecasts that tokenized assets could reach $4 trillion by the end of 2028, with Arbitrum set to benefit as more traditional and digital assets migrate onchain.
The bank projects a potential ARB price of $10 by 2030, representing a notable increase from its present value. This growth outlook reflects broader enthusiasm for asset tokenization and decentralized finance adoption.
