As of October 6, 2026, Paxos’ $3.09 billion market cap USDG stablecoin launched directly on the Arbitrum One layer-2 network. ArbitrumDAO received a proposal to make USDG growth a strategic priority for the network, accompanied by a proposed injection of 100 million ARB into the DRIP incentive program to drive adoption.
Targeting USDC’s Market Share
Arbitrum currently circulates between $3.8 billion and $4 billion in total stablecoin liquidity. Of that total, Circle-issued stablecoin USDC commands a dominant market share of around 60%. Paxos’ introduction of USDG to Arbitrum takes direct aim at capturing a major slice of that capital.
To support its target market, USDG integrated with the Kraken exchange alongside a lineup of major Arbitrum DeFi protocols from day one. The initial list of supporting protocols includes Fluid, Morpho, GMX, Maple, Li.Fi, Gauntlet, LayerZero, and Steakhouse. Decentralized exchanges Uniswap and Fhenix are also scheduled to follow shortly.
Prior to its debut on Arbitrum, the supply of the stablecoin - ranked the world’s seventh-largest according to DeFiLlama data - was concentrated across three ecosystems. The majority of its circulation was concentrated exclusively on the X Layer, Robinhood Chain, and Solana networks.
Reserve Yield Revenue Sharing Rights
The arrival of Paxos’ product brings a new business model to Arbitrum. The integration establishes Arbitrum as a member of the Global Dollar Network - a consortium of over 150 corporate partners including major entities like Robinhood, Kraken, Mastercard, and OKX. That membership status grants Arbitrum the right to share in yield generated from USDG’s reserve income.
The revenue-sharing model from the network adds another cash flow stream to the ecosystem treasury. Robinhood Chain, which was also built using Arbitrum’s technology stack, has already implemented a similar model by sharing a portion of its revenue.
Weighing Costs and Projections
This large-scale stablecoin integration aligns with calculations from global banking institutions. Financial institution Standard Chartered projects that the ARB token has the potential to break the $10 mark by 2030 - representing a projected gain of roughly 70x from its price level at the time the forecast was made. That analysis is based on expectations of rapid expansion in the tokenized asset market, which is projected to surpass $4 trillion by late 2028.
The decision now rests in the hands of governance voters. ArbitrumDAO must determine whether allocating 100 million ARB is a worthwhile cost to bring fresh liquidity and revenue-sharing rights to their network.
Reported by Cointelegraph.
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