Arbitrum holds roughly $4 billion in stablecoins. Until now, the network has not shared in the economics of that money. But a new partnership with the stablecoin network behind USDG changes that.
On 6 October 2026, Global Dollar (USDG), a US dollar-backed stablecoin issued by Paxos, went live on Arbitrum. This blockchain platform hosts one of the largest financial ecosystems on Ethereum. USDG launch became possible since Arbitrum has joined Global Dollar Network. The network’s 150+ partners include Bullish, Kraken, Mastercard, OKX, Paxos and Robinhood. This gives Arbitrum a dollar token aligned with the ecosystem that generates the demand for it, as the blockchain will share in the network’s economics.
“With its industry-leading technology and one of the most vibrant DeFi ecosystems in crypto, Arbitrum consistently drives massive demand for and transaction volume in US dollar-denominated stablecoins. For too long, though, none of that activity has happened in a dollar aligned with the ecosystem creating it.”
Steven Goldfeder, CEO and co-founder of Offchain
USDG is backed 1:1 by US dollar reserves held in cash and cash equivalents. It is redeemable from Paxos for US dollars. The stablecoin is issued natively on Arbitrum One, and more than $3 billion is in circulation across all networks. Paxos Digital Singapore issues it under the supervision of the Monetary Authority of Singapore. Paxos Issuance Europe does the same under FIN-FSA supervision and in line with MiCA.
The strategic role of USDG will be Arbitrum’s “ecosystem-aligned dollar.” It is meant for trading, lending, collateral, settlement and treasury use. Entropy Advisors, working with Offchain, the Arbitrum Foundation and Arbitrum OpCo, spent the past year developing the approach.
Here is what is live from day one:
- Trading: USDG trades on Fluid, which hosts its DEX liquidity on Arbitrum.
- Yield: It earns in Morpho vaults curated by Steakhouse and Gauntlet, and through syrupUSDG on Maple.
- GMX: GMX is building a dedicated USDG liquidity line. USDG will be the only stablecoin in its flagship GLV(USDG) vault.
- Ramps and transfers: Kraken supports USDG on Arbitrum for on and off ramps. Stargate, built on LayerZero, moves USDG between Arbitrum and other chains.
Next on the agenda, Uniswap and Fhenix integrations will follow.
“There is about $4 billion of stablecoins held on Arbitrum. Until today, the ecosystem has not directly shared in the growth and economics of this asset class. With USDG, Arbitrum and builders across the platform now have a stake in the growth upside, which is what these integrations, liquidity and investments are for.”
Brendan Ma, Head of Investment Strategy at the Arbitrum Foundation
Businesses building with USDG can apply to the Arbitrum Foundation’s “USDG on Arbitrum” programme, which offers eligible teams hands-on integration support. Rewards earned on USDG across Arbitrum accrue to the Arbitrum ecosystem. They will be used to grow adoption and support integrating builders. Entropy Advisors will track supply and adoption.
Stablecoin growth on Arbitrum has so far run through incentives. Last year, the ArbitrumDAO launched the DeFi Renaissance Incentive Program (DRIP), designed by Entropy Advisors. Season One was set to distribute up to 24 million ARB, and it targeted borrowing against yield-bearing assets. Such incentives helped bring applications and assets to Arbitrum. One example was Maple’s syrupUSDC, which launched on Arbitrum and integrated with Euler, Morpho and Fluid.
Within the DRIP program, Entropy Advisors and the Arbitrum Foundation also finalised a partnership with Bitget and Steakhouse, directing funds to Steakhouse’s USDC and USDT0 Morpho V2 vaults. Steakhouse agreed to a revenue-sharing arrangement with the Arbitrum ecosystem.
The new USDG deal extends that revenue-sharing approach to the stablecoin economics itself.
