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Arbitrum Integrates Paxos’ USDG as Ecosystem Stablecoin
On October 6, 2026, Arbitrum announced the launch of Paxos' USDG, a regulated stablecoin, natively on its Arbitrum One platform. This integration aims to establish USDG as a core settlement and liquidity asset within Arbitrum's decentralized finance (DeFi) applications, with support from several partners including Fluid, Morpho, GMX, Maple, and Kraken.
USDG is designed to facilitate various DeFi activities such as lending, perpetual trading, and decentralized exchanges. The launch includes a significant incentive program, with approximately 7 million ARB tokens allocated to encourage the use of USDG within the ecosystem. GMX has also introduced a liquidity boost program that targets annual percentage rates (APRs) exceeding 8% for specific USDG liquidity pools during the initial eight weeks of the launch.
Paxos backs USDG with a 1:1 reserve of US dollar cash and equivalents, ensuring its stability and reliability. The stablecoin operates under the oversight of the Monetary Authority of Singapore and complies with the European Union’s Markets in Crypto-Assets (MiCA) framework. With a circulating supply and market capitalization estimated between $3.1 billion and $3.5 billion, USDG is positioned to leverage the Global Dollar Network, which comprises over 150 partner organizations that share in the revenue generated from the stablecoin's reserves.
Source: KLEA News