Key Highlights
- USDG goes live on Arbitrum One with integrations across DeFi, trading and cross-chain services.
- ArbitrumDAO proposes 100 million ARB incentives to support USDG adoption and liquidity across the network.
- USDG has about $3.08 billion in circulation, making it the seventh-largest stablecoin by market capitalization.
Paxos’ Global Dollar (USDG) stablecoin has gone live on Arbitrum One, bringing the dollar-pegged token into the Global Dollar Network with more than 12 integrations from day one.
According to the announcement on October 6, USDG is being positioned for broader use across Arbitrum’s DeFi applications, exchanges and cross-chain services, alongside planned incentive programs.
This means users and applications on the network can access the stablecoin without relying on another blockchain for its initial issuance.
USDG has day 1 integrations through Paxos, Morpho, Fluid, GMX, Uniswap, Kraken, Maple Finance, Gauntlet, Steakhouse, LI.FI, LayerZero and ZeroDev, Arbitrum wrote. It said Fhenix and other platforms are expected to add support soon.
The integrations cover different uses
The first group of integrations covers different uses. According to the announcement, Kraken will support USDG deposits and withdrawals, giving users a way to move the stablecoin through the exchange. Stargate will support transfers between Arbitrum and other blockchains, enabling cross-chain USDG transfers. Other integrations bring the stablecoin into lending, trading, liquidity and other DeFi activities.
Arbitrum said the launch comes into an ecosystem that already has a large amount of stablecoin activity. According to the firm, Stablecoin total value locked on Arbitrum One is about $3.78 billion, while daily stablecoin trading volume averages around $300 million.
The network now wants USDG to become a core asset on Arbitrum One. To help achieve that, an ArbitrumDAO proposal would make USDG growth a strategic goal and add 100 million ARB to an incentive program designed to encourage more users and applications to adopt the stablecoin.
The proposal also includes using assets from the Arbitrum treasury to support USDG liquidity. In simple terms, the plan would provide more resources to help keep USDG available across the network as more platforms begin using it.
Businesses can apply for support
Businesses building with USDG on Arbitrum One can also apply for support from the Arbitrum Foundation. This gives companies another route to receive help as they add the stablecoin to their products.
Arbitrum is also joining the Global Dollar Network, which includes members such as Robinhood, Kraken and OKX.
As part of the partnership, Arbitrum will receive a share of rewards generated from USDG activity on the network. The proceeds will be used for adoption and wider ecosystem development.
According to data from Defillama, USDG has about $3.08 billion in circulation and ranks as the seventh-largest stablecoin by market capitalization. Most of its supply is currently concentrated on X Layer, Robinhood Chain and Solana.
USDG expands beyond its current markets
The Arbitrum launch comes as the network moves into areas beyond traditional crypto applications. Its technology is also being used by financial platforms working to bring traditional and digital assets onto blockchains. Robinhood Chain, which is built using Arbitrum, is one example and is designed to support tokenized real-world and digital assets.
“The USDG launch comes as Arbitrum expands beyond crypto-native applications and becomes infrastructure for financial platforms bringing traditional assets onchain,” the project said.
With USDG now live, Arbitrum is adding the stablecoin to a network where billions of dollars in stablecoins are already being used. Its first day brings more than a dozen integrations, exchange and cross-chain support, while proposed incentives could give the token an even larger role across Arbitrum One.
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