Arbitrum has joined the Global Dollar Network, with Paxos-issued USDG now natively available on Arbitrum One as the stablecoin becomes the layer-2’s default dollar across its decentralized finance ecosystem. The Global Dollar Network announcement, published Oct. 5, positions USDG across liquidity, lending, derivatives collateral and institutional settlement, giving builders on Arbitrum a regulated dollar for on-chain activity as stablecoin consortiums compete to spread issuance and reserve economics.
Arbitrum One has processed nearly 3 billion transactions across almost 90 million addresses, with more than 193,000 verified contracts deployed, according to the network. Mature deployments from Aave, GMX and Pendle already span lending, perpetuals and fixed-rate yield — the markets where a regulated dollar matters most. Arbitrum’s technology also underpins Robinhood Chain, the brokerage’s layer-2, which uses USDG as a natively issued regulated stablecoin.
How Arbitrum Plans to Use USDG
The network outlined four integration paths for USDG: earning through eligible vaults, using it as margin and collateral across perpetual and money markets, quoting and settling across spot and DEX pools plus real-world-asset flows, and holding it for treasury, payments and cross-border transfers. At launch, integrations span lending, trading and payments providers including Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero and Kraken, with Uniswap and Fhenix expected to follow. A similar reserve-sharing arrangement underpins an earlier Global Dollar Network partnership with OKX.
The Reserve-Reward Economics
Unlike most stablecoins, whose reserve income stays with the issuer, the Global Dollar Network distributes it among partners that drive adoption. As a Network partner, Arbitrum now participates in those economics directly, and eligible builders can receive rewards based on the USDG activity they contribute. A governance proposal published Tuesday asks ArbitrumDAO to make USDG growth a strategic priority and add 100 million ARB to its DRIP incentive program.
A Regulated Dollar on a Growing Network
USDG is issued by Paxos Digital Singapore, supervised by the Monetary Authority of Singapore, and by Paxos Issuance Europe under FIN-FSA oversight in compliance with MiCA. It is redeemable one-to-one for dollars, with reserves in segregated accounts and monthly reserve reports. Arbitrum joins a network of more than 150 partners with over $3 billion of USDG in circulation, adding to USDG’s expansion onto other chains such as Ethereum, Ink, Mantle, Robinhood Chain, Solana and X Layer. The move extends a broader shift in which stablecoin alliances compete for distribution and reserve economics across lending, trading and settlement rails.
