Arbitrum Joins Paxos-Led Global Dollar Network, Expanding USDG Ecosystem
Summary
- Ethereum layer-2 Arbitrum said it has created a structure to share part of the reserve income from USDG by joining Paxos's stablecoin consortium, the Global Dollar Network.
- USDG, which is backed one-to-one by dollar reserves, has launched on the Arbitrum network and is being integrated across trading, lending and payments services, with more than $3 billion already in circulation.
- A governance proposal was submitted to ArbitrumDAO that would designate USDG growth as a strategic priority and include 100 million ARB in incentives as well as support for USDG liquidity using foundation assets.
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Arbitrum, the Ethereum layer-2 network, has joined the Global Dollar Network, a stablecoin consortium led by Paxos, creating a structure under which it will share in reserve income generated by USDG circulating in its ecosystem.
CoinDesk reported on October 6 that USDG, the stablecoin issued by Paxos, launched on the Arbitrum network that day.
USDG will be integrated into trading, lending and payments services across the Arbitrum ecosystem, including Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero and Kraken. Uniswap and Fhenix are also set to support it later.
USDG is backed one-to-one by dollar reserves and has more than $3 billion in circulation across multiple networks. The Global Dollar Network includes more than 150 partners, including Robinhood, Kraken, Mastercard and OKX.
The network shares income generated from USDG reserves with partners that help expand distribution, rather than leaving that revenue solely to the issuer. As a result, Arbitrum and developers in its ecosystem will also be able to share in revenue as USDG usage grows.
About $3.8 billion of stablecoins are currently in circulation on the Arbitrum network, with Circle's USDC accounting for about 60% of the total.
"Through USDG, Arbitrum and ecosystem developers can also share in revenue tied to growth," Brendan Ma, head of investment strategy at the Arbitrum Foundation, said.
Separately, a governance proposal was recently submitted to ArbitrumDAO to designate USDG growth as a strategic priority, add 100 million ARB to an incentive program, and support USDG liquidity using foundation assets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.