Crypto

Paxos' $3B USDG stablecoin launches on Arbitrum

Paxos' $3 billion USDG stablecoin — a cryptocurrency pegged to the dollar — went live on Arbitrum, as Arbitrum joined the Global Dollar stablecoin alliance.

Arbitrum will earn a share of USDG's reserve income and proposed incentives of 100 million ARB tokens to support liquidity and adoption.

For beginners Stablecoin issuers hold reserves (usually in US government bonds) and earn interest on them; by sharing that income with blockchain networks, they give platforms an incentive to promote their token to users.