Arbitrum has joined the Paxos-led Global Dollar Network, with USDG launching natively on Arbitrum One and integrating on day one with Fluid, Morpho, GMX and Maple. The move gives the Ethereum layer-2 network a share of the stablecoin's reserve economics, an area where it currently earns nothing despite hosting $3.8 billion in stablecoins.
Arbitrum is joining the Global Dollar Network, the Paxos-led stablecoin consortium behind USDG, to capture a slice of the economics generated by dollar tokens already moving on its network.
USDG goes live natively on Arbitrum One
Paxos launched USDG natively on Arbitrum One on October 6, 2026, meaning the stablecoin is issued directly on the network rather than bridged from elsewhere. Fluid, Morpho, GMX and Maple integrated the token on day one, alongside Li.Fi, Gauntlet, Steakhouse, LayerZero and Kraken, with Uniswap and Fhenix set to follow. Kraken is providing on- and off-ramps for the token.
USDG is backed one-for-one by dollar reserves, with Paxos providing monthly attestations, and its circulating supply is estimated between $3.1 billion and $3.5 billion. The token operates under oversight from the Monetary Authority of Singapore and the European Union's MiCA framework.
A new cut of stablecoin economics
Arbitrum currently hosts about $3.8 billion of stablecoins, roughly 60% of it Circle's USDC, but the network doesn't get a direct share of the reserve income those tokens generate. The Global Dollar Network's model instead distributes rewards from USDG reserves among more than 150 partners that help drive adoption, including Robinhood, Kraken, Mastercard and OKX.
A governance proposal published Tuesday asks ArbitrumDAO to make USDG growth a strategic priority, add 100 million ARB to its DRIP incentive program and direct treasury assets toward USDG liquidity. Separately, GMX is running a launch boost expected to deliver APRs above 8% on specific USDG pools over its first eight weeks. On top of that program, roughly 7 million ARB has been set aside to encourage USDG use across the Arbitrum ecosystem.
Competing dollar alliances multiply
The push comes as rival stablecoin consortiums expand. Open Standard is building OpenUSD with backing from Mastercard, Visa, Stripe, Coinbase and Shopify, while Qivalis is backed by 37 European banks. Each alliance spreads issuance and distribution economics across partners rather than leaving them with a single issuer.
Arbitrum has also drawn attention as the technology underpinning Robinhood Chain, the brokerage's planned Ethereum-based network, with Robinhood agreeing to share a portion of user-activity revenue with the Arbitrum ecosystem.
Sources: CoinDesk, Crypto Briefing
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