Paxos has launched its Global Dollar (USDG) stablecoin natively on Arbitrum One, giving the dollar-pegged token access to one of the largest Ethereum layer-2 networks. The rollout comes with proposed incentives aimed at increasing USDG adoption, liquidity and use across decentralized finance.
USDG expands across Arbitrum’s ecosystem
USDG is joining the Global Dollar Network, with integrations already planned or available across Arbitrum-based decentralized finance protocols including Fluid, Morpho, GMX and Maple. Kraken will support deposits and withdrawals, while Stargate will provide transfers between Arbitrum and other blockchains.
A stablecoin is a cryptocurrency designed to maintain a relatively stable value against an underlying asset, in this case the US dollar. That makes USDG useful for trading, lending, transfers and other blockchain-based financial activity without requiring users to move directly between crypto assets and traditional currency.
According to reporting shared with Cointelegraph, USDG has about $3.09 billion in circulation, making it the seventh-largest stablecoin by market capitalization. Most of the existing supply is held on X Layer, Robinhood Chain and Solana. The launch on Arbitrum adds another network where the token can be issued and used directly.
Arbitrum Foundation data cited in the announcement indicates that approximately $4 billion in stablecoins are currently held on Arbitrum. The size of that existing stablecoin market provides the immediate context for Paxos’ effort to build liquidity and usage on the network.
Arbitrum proposes 100 million ARB incentive plan
An ArbitrumDAO proposal would make USDG expansion a strategic objective and allocate 100 million ARB to an incentive program. The proposal also calls for Arbitrum treasury assets to be used to support USDG liquidity.
Companies integrating the stablecoin would be able to apply for assistance from the Arbitrum Foundation. As a partner in the Global Dollar Network, Arbitrum would also share in rewards generated by USDG activity on the network. Those proceeds would be directed toward adoption and development of the broader Arbitrum ecosystem.
The proposal is intended to support the token’s reach among users and decentralized finance applications. Its implementation depends on the ArbitrumDAO process described in the source material.
Arbitrum targets tokenized assets
The launch forms part of Arbitrum’s broader push beyond crypto-native applications and toward infrastructure for financial platforms bringing traditional and digital assets onchain. Robinhood Chain is a prominent example: it is built using Arbitrum and is designed to support tokenized real-world and digital assets, as well as round-the-clock trading, lending markets and perpetual futures exchanges.
Standard Chartered said last month that Robinhood Chain could alter Arbitrum’s economics, with the network receiving 10% of net protocol revenue generated by companies using its infrastructure. The bank also forecast that tokenized assets could reach $4 trillion by the end of 2028, identifying Arbitrum as one potential beneficiary as more assets move onchain.
Current market picture
Moneyiar market data at 10:19 a.m. on October 7, 2026, showed USDG at $1.0002938893, up 0.03% over 24 hours and 0.02% over seven days. ARB was priced at $0.1864462073 at 10:18 a.m., down 7.79% in 24 hours and 8.19% over seven days.
