Paxos’s Global Dollar (USDG) began operating on Arbitrum this week, linking the stablecoin to a suite of protocols such as Morpho, GMX, Fluid and Maple. Kraken will handle both on- and off-ramp services, while additional platforms—including Uniswap and Fhenix—are slated to join shortly. The rollout adds a new layer of utility for the USDG token across trading, lending and payment applications on the layer-2 network.

Revenue-Sharing Model for Stablecoin Partners

Unlike traditional issuance models where the stablecoin issuer retains all reserve income, the Global Dollar Network allocates a portion of earnings to its partners. Paxos backs USDG one-for-one with U.S. dollar reserves, and the network now counts more than 150 collaborators, among them Robinhood, Mastercard and OKX. By participating, Arbitrum can capture a share of the economic activity generated by the stablecoins flowing through its chain, which currently hosts roughly $3.8 billion in stablecoin assets—about 60% of which is Circle’s USDC.

Arbitrum’s Incentive Proposal

A governance proposal submitted to the Arbitrum DAO calls for three actions: making USDG growth a strategic priority, allocating an additional 100 million ARB tokens to the network’s DRIP incentive scheme, and using treasury assets to support USDG liquidity. Brendan Ma, head of investment strategy at the Arbitrum Foundation, said the move gives builders and the broader ecosystem a stake in the upside of digital-dollar adoption.

Growing Landscape of Stablecoin Consortia

The partnership reflects a wider shift toward multi-partner stablecoin ecosystems. OpenUSD is gathering support from payment giants such as Mastercard, Visa, Stripe, Coinbase and Shopify, while Europe’s Qivalis consortium enjoys backing from 37 banks. These initiatives aim to disperse issuance, distribution and revenue across a broader set of participants, reducing reliance on any single issuer.

Why it matters

Arbitrum’s entry into the Global Dollar Network positions the layer-2 solution to benefit directly from the expanding stablecoin market, while offering developers new incentives to build on its platform. The revenue-sharing framework signals a maturing approach to digital-dollar infrastructure, where multiple stakeholders share in the financial upside, potentially accelerating adoption across DeFi and regulated finance channels.