Arbitrum has partnered with the Paxos-led Global Dollar Network to leverage the economic benefits of stablecoins operating on its platform. This Ethereum layer-2 network aims to capture a portion of the income generated by these stablecoins.

Integrating USDG Across Arbitrum's Ecosystem

The Paxos-issued stablecoin, USDG, launched on Arbitrum with support from various decentralized finance (DeFi) platforms such as Fluid, Morpho, GMX, and Maple, while Kraken facilitates on- and off-ramps for users.

  • Arbitrum is targeting a share of the economic benefits from the approximately $3.8 billion in stablecoins on its network, where about 60% is made up of Circle's USDC.
  • As stablecoin collaborations increase, the OpenUSD initiative has gained backing from major companies like Mastercard, Visa, Stripe, Coinbase, and Shopify, while Qivalis is supported by 37 banks in Europe.

The integration of USDG allows Arbitrum to create a revenue stream from the stablecoin transactions occurring on its network. Currently, USDG has over $3 billion in circulation across various platforms and is fully backed by dollar reserves. The Global Dollar Network boasts more than 150 partners, including notable companies like Robinhood and OKX.

Brendan Ma, head of investment strategy at the Arbitrum Foundation, remarked, "With USDG, Arbitrum and builders across the platform now have a stake in the growth upside." A recent governance proposal suggests that ArbitrumDAO prioritize the growth of USDG, add 100 million ARB tokens to its DRIP incentive program, and utilize treasury assets to enhance USDG liquidity.

This development underscores the rising trend of stablecoin consortiums competing for a share of the digital dollar market. The Open Standard initiative focuses on OpenUSD, with backing from significant financial and commerce organizations, while in Europe, Qivalis aims to distribute issuance and economics among its 37 banking partners.

Arbitrum has recently gained attention for its technology, which supports Robinhood Chain, a planned Ethereum-based network by Robinhood. The brokerage has committed to sharing a portion of its revenue generated from user activities with the Arbitrum ecosystem.