Paxos Labs and LayerZero launched USDG0, a bridged version of the USDG stablecoin, to expand global dollar liquidity across DeFi by enabling cross-chain issuance on blockchains where Paxos does not yet issue USDG.
The rollout will begin on Hyperliquid, which has over $4.5 billion in total value locked, and will expand to Plume and Aptos.
USDG, issued by Paxos, has a market capitalization of over $997 million and is fully backed 1:1 by cash and cash equivalents, powering the Global Dollar Network (GDN).
USDG0 uses LayerZero’s Omnichain Fungible Token (OFT) standard to move USDG to chains where Paxos does not yet offer issuance.
When USDG is moved to a new blockchain, a USDG0 token is created on that chain while the same amount of USDG remains locked in secure audited contracts, ensuring every token is backed and compliant with regulatory standards.
Paxos Labs will also provide a USDG0 Portal for instant cross-chain transfers, APIs, and liquidity systems for large transactions with low fees.
Paxos Labs is a startup launched by Paxos earlier this year.
Paxos is the issuer of several stablecoins, including PayPal’s PYUSD and USDG, and has raised $535 million in funding, valuing the company at about $2.4 billion.
Paxos Labs recently joined forces with the Aleo Network Foundation to launch USAD, a U.S. dollar stablecoin focused on privacy on a Layer 1 blockchain.
Beyond USDG0, the move highlights competition to provide stable liquidity across ecosystems as the DeFi market expands.
DeFiLlama shows the stablecoin market rising to $303 billion in market capitalization, with Tether’s USDT accounting for roughly 61%.
Leave a Reply