Paxos Launches USDG Natively on Arbitrum One With DeFi Integrations

Paxos launched its USDG stablecoin natively on Arbitrum One on Oct. 6, adding trading, lending and exchange integrations as the Ethereum layer-2 expands access to the token.

Arbitrum held approximately $4 billion in stablecoins when the launch took place. USDG circulation exceeded $3 billion across all networks.

The rollout enables USDG trading through Fluid and Uniswap, lending through Morpho and access to a GLV USDG vault from GMX. Maple added its syrupUSDG product, while Kraken supports USDG deposits and withdrawals.

The launch also connected Arbitrum to the Global Dollar Network, which has more than 150 partners. The network distributes rewards based on the demand for USDG generated by participating partners.

“Network rewards follow the partners who create demand for USDG,” Paxos Chief Revenue Officer Peter Jonas said.

The initiative builds on Arbitrum’s broader network expansion while adding a proposed incentive package for USDG adoption. Entropy Advisors has proposed allocating 100 million ARB to Arbitrum’s DRIP incentive program, using treasury assets to support USDG growth and converting Arbitrum Expansion Program fees into USDG.

The ARB allocation remains a proposal and has not been approved. Discussion is scheduled through Oct. 15, followed by an off-chain vote from Oct. 15–22 and an on-chain vote from Oct. 29 to Nov. 12.

USDG is backed one-for-one by U.S. dollar reserves and can be redeemed through Paxos for dollars.