Crypto06 October, 20262 min read
Arbitrum Joins Paxos-Led Global Dollar Network To Expand USDG On Ethereum L2
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Arbitrum joined Paxos-led Global Dollar Network to share in USDG reserve income on its network. USDG launched on Arbitrum with integrations across DeFi apps including Morpho, GMX, Fluid, Maple.
6 outlets told this the same way.
USDG lands on Arbitrum
Arbitrum joined the Paxos-led Global Dollar Network, positioning the Ethereum layer-2 as a distribution and adoption vehicle for the Paxos-issued stablecoin USDG. USDG launched on the Arbitrum network on the 6th, and the stablecoin was described as being integrated across decentralized finance services throughout the Arbitrum ecosystem. The integrations named across trading, lending, and payment services included Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero, and Kraken, with Uniswap and Fhenix expected to join soon.
The Global Dollar Network was described as having more than $3 billion in circulation across multiple networks, with USDG backed 1:1 by dollar reserves. Brendan Ma, head of investment strategy at the Arbitrum Foundation, said, "Through USDG, Arbitrum and builders across the platform now have a revenue stake in its growth."
Reserve income shared
The Global Dollar Network was described as distributing revenue generated by USDG reserve assets to partners who contribute to expanding circulation, rather than leaving those economics solely with the issuer. Arbitrum was said to have created a structure to share part of the reserve income from USDG by joining Paxos's stablecoin consortium, the Global Dollar Network. The report said Arbitrum currently has approximately $3.8 billion in stablecoins circulating on its network, with Circle's USDC accounting for roughly 60% of that total.
A governance proposal was submitted to ArbitrumDAO to designate USDG growth as a strategic priority and add 100 million ARB to DRIP, the network's incentive program. The governance proposal also included measures to leverage foundation assets to support USDG liquidity, as the alliance model was framed as a revenue-sharing structure tied to usage growth.
Competition for digital dollars
The Global Dollar Network was framed as one of several stablecoin alliances competing for distribution, user base, and reserve economics in the digital dollar market. The report said Open Standard is building an ecosystem around OpenUSD, with backing from Mastercard, Visa, Stripe, Coinbase, and Shopify, while Qivalis was described as being supported by 37 banks. The same coverage said Arbitrum's technology underpins Robinhood Chain, and Robinhood agreed to share a portion of revenue generated from user activity with the Arbitrum ecosystem.
The model was described as spreading issuance, distribution, and revenue structures across a broader partner network rather than concentrating them within a single company. The article also stated that "USDG has launched on Arbitrum on Tuesday" and that Uniswap and Fhenix were set to follow as additional integrations.