Arbitrum is joining the Global Dollar Network, a Paxos-led consortium behind the USDG stablecoin, as the Ethereum layer-2 network seeks to benefit financially from the digital dollars circulating through its ecosystem. USDG launched on Arbitrum on Tuesday with integrations across trading, lending and payments.
USDG expands across Arbitrum
Paxos issues USDG, which is backed one-for-one by dollar reserves. The stablecoin has more than $3 billion in circulation across networks, while the Global Dollar Network has more than 150 partners, including Robinhood, Kraken, Mastercard and OKX.
On Arbitrum, USDG is being introduced through a broad group of applications and infrastructure providers. The initial integrations include Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero and Kraken. Kraken will provide services allowing users to move funds into and out of the ecosystem, while Uniswap and Fhenix are expected to follow.
The launch covers several common stablecoin uses. Trading platforms can use USDG as a quoted or settlement asset, lending protocols can support it as a deposit or borrowing asset, and payment-related applications can use it to transfer dollar-linked value on the network. A stablecoin is a digital token designed to maintain a stable value against an underlying asset; in this case, USDG is intended to track the U.S. dollar.
Arbitrum seeks a share of reserve income
The partnership is significant because Arbitrum already hosts a large amount of stablecoin activity but does not directly receive income generated by the reserves backing those tokens. DefiLlama data cited in the report shows that approximately $3.8 billion of stablecoins are currently held on Arbitrum. Circle’s USDC represents about 60% of that total.
The Global Dollar Network uses a different economic model from a structure in which reserve income remains solely with the issuer. It distributes rewards generated by USDG’s reserves among partners that help expand the stablecoin’s use. By joining the network and supporting USDG adoption, Arbitrum aims to obtain a share of the economics associated with stablecoin activity on its platform.
“With USDG, Arbitrum and builders across the platform now have a stake in the growth upside,” Brendan Ma, head of investment strategy at the Arbitrum Foundation, said, according to CoinDesk.
A governance proposal published Tuesday asks ArbitrumDAO to make the expansion of USDG a strategic priority. It also proposes adding 100 million ARB to the network’s DRIP incentive program and using treasury assets to support USDG liquidity. The source material does not state whether the proposal has been approved.
The arrangement reflects a broader effort by blockchain networks and their commercial partners to compete not only for stablecoin users, but also for the revenue and influence connected with issuing and distributing digital dollars. Stablecoins are used across crypto markets because they provide a tokenized form of dollar value that can move through blockchain-based trading, lending and payment systems.
Stablecoin alliances multiply
The Global Dollar Network is part of a growing group of alliances designed to distribute stablecoin issuance, adoption and economics among multiple participants. Open Standard is developing OpenUSD with support from Mastercard, Visa, Stripe, Coinbase and Shopify. In Europe, Qivalis is backed by 37 banks.
These partnerships bring together issuers, financial institutions, payment companies, exchanges and applications. Their shared objective is to expand the reach of a stablecoin while giving participating organizations a role in its distribution or economic model. For Arbitrum, the USDG agreement offers a way to pursue those benefits around stablecoins already used on its network.
Arbitrum has also gained attention through its role in Robinhood Chain, the brokerage’s planned Ethereum-based network. Robinhood has agreed to share a portion of revenue generated by user activity with the Arbitrum ecosystem, according to the source material.
Moneyiar market picture
Moneyiar data at 10:04 a.m. Tehran time on October 7, 2026, showed USDG at $1.0001384708, up 0.02% over 24 hours and essentially unchanged over seven days.
Other listed assets were weaker at the same time:
- Ethereum was $2,594.564620577, down 4.25% over 24 hours and 3.52% over seven days.
- Uniswap was $8.0562971097, down 9.15% over 24 hours and 8.79% over seven days.
- Shiba Inu was $0.0000054911, down 6.3% over 24 hours and 5.47% over seven days.
USDG’s near-$1 price is consistent with its stated design as a dollar-linked token, while the broader market figures show declines among the other assets tracked by Moneyiar at the stated time.
