Paxos has launched the Global Dollar (USDG) stablecoin on Arbitrum. A proposal has been submitted to ArbitrumDAO to allocate 100 million ARB as incentives to increase its adoption and liquidity.

Native issuance on Arbitrum One and DeFi integrations

USDG is natively issued on the Arbitrum One network with integrations into the Fluid, Morpho, GMX, and Maple protocols. The exchange Kraken will support deposits and withdrawals, while the Stargate bridge will enable transfers between Arbitrum and other blockchains.

Incentive program and participation of Arbitrum treasury

The proposal in ArbitrumDAO makes the growth of USDG a strategic goal and adds 100 million ARB to the incentive program. The document suggests using Arbitrum treasury assets to support USDG liquidity; businesses integrating the stablecoin will be eligible for support from the Arbitrum Foundation. As part of the partnership with Global Dollar Network, Arbitrum will receive a share of the rewards from USDG activity on the network, directing proceeds to adoption and ecosystem development.

About $4B in stablecoins on Arbitrum; USDG at $3.09B

There are approximately $4 billion in stablecoins circulating on the Arbitrum network. USDG is the seventh largest stablecoin by market capitalization, with about $3.09 billion in circulation; most of the issuance is concentrated on X Layer, Robinhood Chain, and Solana networks.

Arbitrum expands into tokenization; the role of Robinhood Chain

The launch of USDG coincided with Arbitrum's expansion beyond crypto-native applications toward infrastructure for on-chain traditional assets. The public mainnet of Robinhood Chain, built using Arbitrum technology, launched in July after a February testnet; the network targets tokenized real-world and digital assets, including 24/7 trading, credit markets, and perpetual exchanges. Standard Chartered noted that such an architecture could change Arbitrum's economics: the network receives 10% of the net revenue from protocols built on its infrastructure. According to the bank, combined with the growth of tokenization, this could help ARB reach $10 by 2030 (about 70 times the price at that time); the volume of tokenized assets could reach $4 trillion by the end of 2028.