Arbitrum said on Oct. 6 that it has joined the Global Dollar Network, a stablecoin alliance led by Paxos, and that USDG, the dollar-pegged stablecoin issued through the initiative, is now live on the Arbitrum network. The rollout brings USDG into several DeFi venues from the start, including Morpho, GMX, Fluid and Maple. Kraken is set to handle fiat and crypto on- and off-ramp services tied to the stablecoin, while platforms such as Uniswap are expected to add support later.
Arbitrum said the Global Dollar Network uses a different model from traditional stablecoin structures by distributing part of reserve-generated income to partners that help expand USDG adoption. That would allow Arbitrum and projects in its ecosystem to share in the economic upside tied to the stablecoin’s growth. At the governance level, ArbitrumDAO has also received a proposal that would make USDG growth a strategic priority, add 100 million ARB to the DRIP incentive program, and use treasury assets to support USDG liquidity. The proposal has not yet been approved.
Arbitrum said on Oct. 6 that it has joined the Global Dollar Network (GDN), a stablecoin alliance led by Paxos. USDG, the U.S. dollar stablecoin issued through the network, is now live on Arbitrum.
USDG launches with DeFi integrations
According to the announcement, USDG has already been integrated with DeFi protocols including Morpho, GMX, Fluid and Maple. Kraken will provide fiat and crypto conversion services, and platforms such as Uniswap plan to add support later.
Revenue-sharing model differs from traditional stablecoins
Unlike traditional stablecoin models, the Global Dollar Network distributes part of its reserve income to partners that help drive USDG adoption. Arbitrum said this structure would allow the network and projects in its ecosystem to share in the economic benefits linked to stablecoin growth.
ArbitrumDAO proposal has not been approved
ArbitrumDAO has also received a governance proposal that would make USDG growth a strategic priority, allocate an additional 100 million ARB to the DRIP incentives program, and deploy treasury assets to support USDG liquidity. The proposal has not been approved at this stage.
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