TLDR
- Arbitrum has joined the Global Dollar Network, a stablecoin group led by Paxos.
- The USDG stablecoin launched on Arbitrum this week with partners including Morpho, GMX, Fluid, and Maple.
- Kraken will provide on-ramp and off-ramp services for USDG on the network.
- Arbitrum plans to add 100 million ARB tokens to its incentive program to support USDG.
- Arbitrum already carries about $3.8 billion in stablecoins, with USDC making up roughly 60% of that total.
Arbitrum has joined the Global Dollar Network, a stablecoin group led by Paxos. The Ethereum layer-2 network is looking for a new way to earn money from stablecoin activity happening on its platform.
$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. 🧵 pic.twitter.com/2m9YkHbdGi
— Arbitrum (@arbitrum) October 6, 2026
The group’s stablecoin, called USDG, launched on Arbitrum this week. It now works with several platforms including Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, Steakhouse, and LayerZero.
Kraken is also part of the rollout. The exchange will handle ways for users to move money in and out of USDG.
Two more platforms, Uniswap and Fhenix, are expected to add support for USDG soon.
Paxos issues USDG. The stablecoin is backed one-to-one by dollar reserves and has more than $3 billion in circulation across different blockchain networks.
The Global Dollar Network has over 150 partners. These include Robinhood, Kraken, Mastercard, and OKX.
How the Stablecoin Model Works
The Global Dollar Network splits reserve income among partners who help the stablecoin grow. This is different from older models, where the issuer alone kept the profits from reserves.
LATEST: ⚡️ Arbitrum joined the Paxos-led Global Dollar Network, with USDG launching on the blockchain and integrations spanning Morpho, GMX, Fluid, Maple and others. pic.twitter.com/G1XKssA3rw
— CoinMarketCap (@CoinMarketCap) October 6, 2026
Under this setup, Arbitrum can now earn a share of that income. Brendan Ma, head of investment strategy at the Arbitrum Foundation, said the change gives Arbitrum and its builders a stake in future growth.
Arbitrum currently holds about $3.8 billion in stablecoins. Circle’s USDC makes up close to 60% of that amount, based on data from DefiLlama.
Until now, Arbitrum did not receive a direct share of the reserve income tied to those tokens.
Governance Proposal and Industry Context
A new governance proposal was published this week. It asks ArbitrumDAO to treat USDG growth as a priority for the network.
The proposal calls for adding 100 million ARB tokens to Arbitrum’s DRIP incentive program. It also asks for treasury funds to be used to support USDG liquidity.
This move is part of a larger trend among stablecoin groups. Companies are forming alliances instead of running stablecoins alone.
Open Standard is one example. It is building a stablecoin called OpenUSD with support from Mastercard, Visa, Stripe, Coinbase, and Shopify.
In Europe, a separate group called Qivalis has backing from 37 banks.
The idea behind these alliances is to share issuance and distribution across many partners. This spreads out both the control and the profits from the stablecoin.
Arbitrum has drawn other attention recently as well. Its technology powers Robinhood Chain, a planned blockchain network from the brokerage firm.
Robinhood has agreed to share a portion of revenue from that network with the Arbitrum ecosystem.
No rollout timeline for USDG expansion beyond Arbitrum’s current partners has been announced. Details on reserve structure and jurisdictional reach have not been confirmed either.
For now, USDG is live on Arbitrum with its initial group of partners, and Kraken is handling the on- and off-ramp services tied to the launch.
