The bridged stablecoin will initially be deployed on Hyperliquide, followed by Plume and Aptos.
Paxos Labs and LayerZero on Tuesday launched USDG0, a bridged version of the USDG stablecoin that will allow it to operate on additional blockchains.
USDG, issued by Paxos, has a market capitalization of over $997 million and is fully backed 1:1 by cash and cash equivalents. The token powers the Global Dollar Network (GDN) and is currently available on Solana, Ethereum, Ink and X Layer.
The bridged token, built on LayerZero’s Omnichain Fungible Token (OFT) standard, allows USDG to move to chains where Paxos does not yet offer issuance. The rollout will begin with Hyperliquid, whose total value locked (TVL) exceeds $4.5 billion, and expand to Plume and Aptos, the company revealed in a press release seen by The Defiant.
The launch highlights the competition between platforms to provide stablecoins that developers and users can trust for trading, lending, and other decentralized finance (DeFi) activities.
The stablecoin market has grown sharply this year, growing to $303 billion in market capitalization from $208 billion in January, according to DeFiLlama. Tether’s USDT currently has the largest market share with around 61% and a market cap of $184 billion.
“USDG0 reflects a shared vision to make the global dollar accessible wherever users transact,” said Ronak Daya, Head of Product at Paxos. “By extending the reach of USDG through Paxos Labs and LayerZero, we are giving every ecosystem the opportunity to integrate reliable, economically aligned stable liquidity, powered by the same foundation that underpins all assets issued by Paxos.”
When USDG is moved to a new blockchain, USDG0 is created on that chain while the same amount of USDG remains locked in secure, audited contracts. This ensures that each token is supported and compliant with regulatory standards, the release explains.
Paxos Labs will also provide supporting infrastructure, including 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. It has raised $535 million from investors and is valued at $2.4 billion, according to Traxcn.
Most recently, Paxos Labs partnered with the Aleo Network Foundation, the nonprofit organization that supports the Aleo Network, to launch USAD, a US dollar stablecoin. USAD will be a dollar-backed stablecoin, issued on a layer 1 blockchain and focused on privacy, The Defiant previously reported.
