Arbitrum joins Paxos-led stablecoin group Global Dollar to capture digital dollar growth
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Summary
Arbitrum has joined the Paxos-led Global Dollar Network to support the Paxos-issued stablecoin USDG on its DeFi ecosystem. USDG is now integrated with several Arbitrum platforms such as Morpho, GMX, Fluid, Maple, and Kraken is providing on- and off-ramps. This partnership aims to allow Arbitrum to capture some of the economic activity generated by stablecoins on its network, which currently holds about $3.8 billion in stablecoins, mostly USDC.
Why it matters
The integration of USDG on Arbitrum gives the Ethereum layer-2 network and its builders a direct stake in the growth and revenue generated from stablecoin activity, which they previously did not share. This development reflects a broader industry trend of stablecoin consortiums spreading issuance and economic benefits across multiple partners rather than centralizing control with a single issuer.
Key context
Arbitrum currently holds approximately $3.8 billion in stablecoins, with USDC accounting for around 60%. USDG is a dollar-backed stablecoin issued by Paxos with over $3 billion in circulation across various networks. The Global Dollar Network includes over 150 partners such as Robinhood, Kraken, Mastercard, and OKX, working under a model that distributes rewards from USDG reserves among partners who help drive adoption. A governance proposal encourages ArbitrumDAO to prioritize USDG’s growth and allocate incentives and treasury assets to support USDG liquidity.
Key numbers and entities
Arbitrum, Paxos, Global Dollar Network, USDG, Offchain Labs, Morpho, GMX, Fluid, Maple, Kraken, Circle (USDC), Uniswap, Fhenix, Robinhood, Mastercard, Visa, Stripe, Coinbase, Shopify, Qivalis (37 European banks). Arbitrum holds about $3.8 billion in stablecoins with ~60% USDC; USDG has more than $3 billion in circulation; Global Dollar Network has 150+ partners; ArbitrumDAO proposed adding 100 million ARB for USDG incentives.
What remains unclear
The source does not detail the specific economic terms of Arbitrum’s revenue share from USDG activity or how widespread USDG adoption will be compared to other stablecoins already on Arbitrum. The long-term impact of stablecoin consortium competition, including Global Dollar Network versus OpenUSD and Qivalis, on user adoption or regulatory response is also not established.