USDG natively launches Mantle, Paxos accelerates expansion

The USDG issued by Paxos has been launched natively on the Mantle network, joining a stablecoin alliance with more than 150 partners for the Ethereum Layer 2 network.

Summary

USDG can now be minted directly on Mantle and used for DeFi liquidity and institutional clearing. Mantle has joined the Global Dollar Network and can share rewards generated by USDG activities. USDG has approximately US$3.18 billion in circulation, ranking seventh among stablecoins tracked by DefiLlama. Mantle's distributed real-world assets (RWA) value reached $234.2 million after rising 19% in 30 days.

USDG brings native stablecoin issuance to Mantle

The Global Dollar Network stated in an announcement on September 3 that USDG has now become one of the first stablecoins issued directly on Mantle, allowing the token to enter circulation without relying on a wrapped version created through a third-party bridge. Mantle is built as an Ethereum Layer 2 network, using Ethereum-compatible infrastructure and processing transactions outside the basic chain. As a result, developers can use existing Ethereum tools while benefiting from the network's lower transaction costs and higher processing power. USDG will provide dollar-linked settlement and liquidity assets for Mantle's decentralized financial applications and tokenized investment products. Mantle said its intended use ranges from DeFi transactions to institutional capital allocation, but access to individual products remains limited by each issuer's terms and local regulations.

Native issuance also changes the technical path for deploying the stablecoin on the network. Paxos can create and redeem USDG directly on Mantle without having to hold a token on another blockchain and issue a bridge representative. Paxos claims that each token can be exchanged for U.S. dollars on a 1:1 ratio. USDG has been released on Ethereum, Solana, Ink, X Layer and Robinhood Chain. According to DefiLlama, USDG has a market value of approximately US$3.18 billion and is the seventh largest stablecoin. The Global Dollar Network said in an announcement on Thursday that its liquidity was close to US$3.5 billion, a difference that may be due to differences in timing and methods between the two data sources.

Mantle joins USDG's 150 partner network

With this native launch, Mantle has joined the Global Dollar Network, an alliance built around the distribution and use of USDG. The organization has more than 150 partners, including Kraken, Robinhood, Paxos, OKX and Worldpay. The Global Dollar Network uses a reward-sharing structure where participating companies receive a portion of the revenue generated by assets that support USDG. The amount available to each participant depends on his or her role, activities, and business agreements with the network. For Mantle, partner status adds an economic dimension to its stablecoin integration. The network receives rewards related to USDG adoption, while developers receive another dollar-linked asset for trading, borrowing, payments and settlements.

Paxos Digital Singapore issues USDG under the supervision of the Monetary Authority of Singapore. Within the European Union, Paxos Issue Europe issues the token under the supervision of the Finnish Financial Supervisory Authority and in accordance with the Crypto Asset Markets Regulation. Paxos publishes a monthly reserve report covering assets that support USDG. The company said the stablecoin is fully backed by reserves and can be redeemed at face value, while the global dollar network distributes part of reserve revenue to eligible business partners rather than automatically paying each token holder. Previous promotions in Europe have made USDG available through exchanges and custodians such as Kraken, Gate, SwissBorg and Zodia Custody.

Mantle expands its tokenized asset business

The launch of native USDG comes as Mantle is adding tokenized stocks, exchange-traded funds, commodities, U.S. Treasury bonds and asset-backed credit products. The Mantle team set its total RWA lockup value at approximately $240 million, compared with approximately $22 million a year ago. Independent data from RWA.xyz showed that as of Wednesday, the value of distributed real-world assets on Mantle was $234.2 million, a 19% increase from the previous 30 days. Differences between this figure and other estimates may arise from the reporting date and whether the provider is measuring the value of distributed assets, DeFi deposits, or the full value of tokenized products. Mantle said its ecosystem contains more than 700 tokenized assets. Recent additions include SPCXx, a product linked to private company SpaceX, and USPXx, a product that tracks the Franklin Templeton U.S. Equity Index ETF. Token terms may vary, meaning blockchain tokens may provide direct ownership, issuer backed claims, or simply price exposure to the reference asset. According to updated data from Blockworks Research, Mantle's tokenized assets are approximately US$330 million, and its stablecoin supply is close to US$550 million, totaling approximately US$880 million. The same dataset counts 985 different tokenized products, including stocks, commodities, assets linked to government bonds, funds, and interest-bearing stablecoins.

Adding USDG brings Mantle another regulated dollar product. Mantle has expressed the hope that stablecoin liquidity will support active on-chain strategies rather than allowing tokenized assets to sit idle after issuance. One of the products was opened to DeFi users in August, and the size of earlier version management assets previously distributed through Bybit has exceeded $200 million. The unmanaged vault accepts USDC and USDT0 through Fluxion, strategies designed by CIAN, and Grove connects deposits with revenue generated through the Sky ecosystem.

U.S. regulations affect access to Mantle tokenized products

For U.S. users, the fact that the USDG is pegged to the U.S. dollar does not in itself confirm that every Mantle application, reward program, or tokenized asset is legally available within the United States. Eligibility depends on the issuer, distributor, product structure, platform terms, and applicable federal and state regulations. This distinction is particularly important for Mantle's equity-linked products. The U.S. Securities and Exchange Commission said in a January 2026 statement that tokenized securities remain a security when ownership records are maintained partially or entirely through cryptographic networks. Moving tools to blockchain does not separate it from U.S. securities laws. As a result, Mantle's tokenized products linked to SpaceX and the Franklin Templeton U.S. Equity Index ETF require a separate review of their ownership and distribution restrictions. Tokens that track asset prices may not give their holders shares, voting rights, dividends, or direct claims against the associated company or fund.

The USDG's entry into Mantle comes as U.S. agencies are developing rules under the GENIUS Act, which became law in July 2025. The framework establishes reserve, redemption, disclosure and licensing requirements for approved issuers of payment stablecoins, including providing a path for foreign issuers from jurisdictions determined by U.S. authorities to have comparable regulatory levels. Federal agencies failed to meet the statutory July 2026 deadline for completing all implementation rules. The Office of the Comptroller of the Currency has set the final rule in November, and the law plans to take effect on January 18, 2027, or 120 days after regulators complete the formulation of necessary rules.