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Arbitrum joins the global dollar network, USDG becomes its default DeFi dollar

2026-10-07 00:23:36
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Arbitrum joins the Global Dollar Network, and USDG becomes the default dollar asset in its decentralized financial ecosystem.

Arbitrum has officially joined the Global Dollar Network. USDG issued by Paxos is now natively connected to Arbitrum One, becoming the Layer-2 network's preferred U.S. dollar stablecoin in the decentralized finance (DeFi) ecosystem. The announcement issued on October 5 pointed out that USDG will cover multiple areas such as liquidity provision, lending, derivative collateral, and institutional clearing, and provide compliant on-chain activity US dollar support for developers on Arbitrum. This move marks a new change in the market landscape as the stablecoin alliance competes to expand issuance sizes and reserve economy models.

According to online data, Arbitrum One has processed nearly 3 billion transactions, involving nearly 90 million addresses, and deployed more than 193,000 verified contracts. Currently, mature applications such as Aave, GMX and Pendle have been widely deployed in areas such as lending, perpetual contracts and fixed income, which are market segments where compliant dollars play a key role. In addition, Arbitrum's technology also supports the Robinhood Chain (Robinhood brokers 'Layer-2 network), which also uses USDG as a native-issued compliant stablecoin.

How to Use USDG for the Arbitrum Project

The network outlines four major integration paths for USDG: earning revenue through eligible vaults; using it as margin and collateral in perpetual contracts and money markets; quoting and settling in spot and decentralized exchange (DEX) pools and real-world asset (RWA) flows; and using it for treasury management, payments, and cross-border transfers. During the launch phase, the integration covers lending, transaction and payment providers such as Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero and Kraken, with Uniswap and Fhenix expected to follow suit. Previously, a similar reserve sharing agreement reached between OKX and the Global Dollar Network also confirmed this cooperation model.

Reserves reward economic mechanism

Unlike most stablecoins that retain reserve revenue to issuers, the global dollar network allocates this revenue to partners that drive adoption rates. As a network partner, Arbitrum is now directly involved in this economic model, and eligible developers can be rewarded based on the USDG activities they contribute. A governance proposal released Tuesday calls for Arbitrum DAO to make USDG growth a strategic priority and add an additional 100 million ARBs to its DRIP incentive plan.

Compliance dollars on the growing network

USDG is issued by Paxos Digital Singapore, which is regulated by the Monetary Authority of Singapore (MAS), and by Paxos Issuance Europe, which complies with the requirements of the Crypto Asset Markets Regulation (MiCA) under the supervision of the Financial Services Regulatory Authority of Finland (FIN-FSA). USDG can be converted into U.S. dollars on a 1:1 ratio, reserves are placed in segregated accounts, and reserve reports are issued monthly. Arbitrum joins a network of more than 150 partners, and the total USDG in circulation has exceeded US$3 billion. This move is also an important step for USDG to expand into more blockchains after Ethereum, Ink, Mantle, Robinhood Chain, Solana and X Layer. The move reflects a broader industry trend that the stablecoin alliance is competing with the reserve economy over the distribution of lending, trading and settlement channels.

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