Arbitrum has joined the Global Dollar Network, a Paxos-led stablecoin group behind USDG, as the Ethereum layer-2 network looks to increase the use of stablecoins on its platform. USDG has now launched on Arbitrum, with integrations for trading, lending and payments.
Several platforms, including Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, LayerZero and Kraken, are already involved. Uniswap and Fhenix are expected to follow.
USDG is issued by Paxos and is backed by dollar reserves on a one-to-one basis. The stablecoin has more than $3 billion in circulation across different blockchain networks. The Global Dollar Network has more than 150 partners. These include Robinhood, Kraken, Mastercard and OKX.
One interesting part of the network is how it shares the money generated from USDG reserves. Instead of keeping all the income with the stablecoin issuer, the network can share rewards with partners that help increase the use of USDG.
$USDG from @Paxos is now live on Arbitrum.
Joining the Global Dollar Network brings Arbitrum closer to GDN members like @RobinhoodApp, @krakenfx, @OKX and more.
We’ll grow $USDG as a core asset on Arbitrum One through partner incentives and protocol-level integrations. 🧵 https://t.co/2m9YkHbdGi
— Arbitrum (@arbitrum) October 6, 2026
This could give Arbitrum a new way to benefit financially from stablecoin activity on its blockchain. There are already billions of dollars worth of stablecoins on Arbitrum. DefiLlama data shows that the network has about $3.8 billion in stablecoins. Circle’s USDC makes up around 60% of this amount.
Arbitrum itself does not receive a direct share of the income generated by the reserves backing these stablecoins. The USDG arrangement could therefore give the network and its developers a different opportunity.
Brendan Ma, head of investment strategy at the Arbitrum Foundation, said Arbitrum and developers on the network would have a stake in the growth of USDG.
A proposal submitted to ArbitrumDAO also asks the community to make USDG growth a major priority. It proposes adding 100 million ARB tokens to the DRIP incentive programme and using treasury assets to support USDG liquidity.
The move is part of a wider competition between different stablecoin networks. Several companies are now trying to build stablecoin systems where different partners share the benefits from issuing and using digital dollars.
Arbitrum has also been attracting attention for other reasons. Its technology is being used for Robinhood Chain, a planned Ethereum-based network from the brokerage company Robinhood. Robinhood has agreed to share part of the revenue generated by user activity with the Arbitrum ecosystem. For Arbitrum, the USDG partnership is another attempt to make stablecoins a bigger part of activity on its network.
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