Paxos launches USDG stablecoin on Arbitrum

Paxos has launched its USDG stablecoin natively on the Arbitrum One network. As part of the Global Dollar Network, USDG is designed to serve as a core settlement and liquidity asset within the Arbitrum DeFi ecosystem.

On its first day, the stablecoin saw integrations with several decentralized finance protocols, including Fluid, Morpho, GMX, and Maple. Kraken will provide exchange support for deposits and withdrawals, while Stargate will facilitate transfers between Arbitrum and other blockchains. To encourage adoption, a proposal has been submitted to the ArbitrumDAO to include USDG growth as a strategic objective, potentially involving an incentive program of 100 million ARB and the deployment of treasury assets to support liquidity.

USDG is backed 1:1 by US dollar cash and equivalents, with oversight from the Monetary Authority of Singapore and compliance with the European Union’s MiCA framework. The stablecoin currently holds a market capitalization estimated between $3 billion and $4 billion.