Paxos officially began issuing its USDG stablecoin directly on the Mantle network on September 3, 2026. Through native issuance, Paxos now maintains full control over minting and redeeming USDG directly on the Ethereum-based layer-2 network, removing reliance on wrapped tokens typically managed by third-party bridges.
A market capitalization of $3.18 billion according to DefiLlama - or reaching $3.5 billion based on internal records from the Global Dollar Network - positions USDG as the seventh-largest stablecoin in the crypto industry. The Mantle launch expands the distribution footprint of this dollar-pegged asset, following its deployment across established networks including Ethereum, Solana, Ink, X Layer, and Robinhood Chain.
Reward-Sharing Distribution Coalition
The Mantle network integration comes bundled with its new status as an official partner of the Global Dollar Network. The global USDG distribution coalition coordinates more than 150 companies, bringing together exchanges like Kraken and OKX with investment platform Robinhood and payment provider Worldpay. The partnership grants Mantle a share of revenue through reward-sharing on USDG usage within its layer-2 ecosystem.
Mantle’s infrastructure itself has become a hub for institutional capital rotation. Its ecosystem handles real-world asset (RWA) value reaching $234.2 million as of Wednesday - reflecting a 19% increase over the past 30 days based on data tracked by RWA.xyz. Mantle’s user community interacts with over 700 tokenized asset types, including specific products such as SPCXx for exposure to SpaceX share value and Franklin Templeton’s USPXx ETF product.
Competing in a Crowded Market
The arrival of USDG forces Paxos to battle for market share against competitors crowding the Mantle ecosystem. The new token directly goes head-to-head with six existing stablecoins, ranging from USDT0, Ethena USDe, Agora AUSD, Circle USDC, and Aave GHO to the newly released World Liberty Financial USD1.
Paxos is leveraging dual regulatory licensing as its competitive edge. Its subsidiary Paxos Digital Singapore oversees issuance targeting the Asian market under the strict supervision of the Monetary Authority of Singapore (MAS). European operations are handled by the Paxos Issuance Europe entity, which operates under an authorization from the Finnish FSA and fully complies with MiCA regulations. The shift of institutional players to layer-2 highlights a new chapter in stablecoin competition, where market trust is anchored by regulatory backing. Reported by crypto.news.
Read also: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
