Paxos-Backed USDG Stablecoin Launches Natively on Mantle as Network Joins Global Dollar Network

Paxos-Backed USDG Stablecoin Launches Natively on Mantle as Network Joins Global Dollar Network

Paxos-issued stablecoin USDG has launched natively on Mantle, with the Ethereum layer-2 network joining the Global Dollar Network as a partner, the project announced on Thursday.

The integration makes USDG one of the first stablecoins to be natively minted on Mantle, a step beyond the bridged arrangements that account for much of the stablecoin liquidity on layer-2 networks. Native issuance means reserves and minting mechanics operate directly with the network rather than through a wrapped or transferred representation of tokens issued elsewhere.

The move also brings Mantle into USDG’s reward-sharing structure. As a Global Dollar Network partner, Mantle is eligible to receive a share of the rewards generated by USDG activity on the network, joining a coalition of more than 150 partners that includes major crypto industry firms such as Kraken and Robinhood.

The Global Dollar Network is the distribution framework built around USDG, designed to let exchanges, custodians, and other platforms share in the economic benefits of the stablecoin’s circulation rather than simply routing value to the issuer. For a layer-2 network, participation signals an effort to deepen stablecoin liquidity while capturing part of the yield generated by that activity.

USDG currently has a market capitalization of approximately 3.18 billion USD, making it the seventh-largest stablecoin tracked by DeFiLlama. The token is issued by Paxos, one of the most established names in the sector and the company behind other regulated stablecoin products. Paxos operates USDG under regulatory frameworks in Singapore and the European Union, and publishes monthly reports on the reserves backing the token.

The regulatory posture is notable as stablecoin issuers race to position themselves within emerging rulebooks in major jurisdictions. Issuers with transparent reserve reporting and recognized regulatory licenses have gained favor among institutions seeking compliant dollar instruments on public blockchains.

USDG joins a growing roster of stablecoins available on Mantle, including Agora’s AUSD, Ethena’s USDe, and Tether’s USDT0. Mantle said the new token will be used across its ecosystem for decentralized finance applications and institutional capital allocation, two segments that increasingly overlap as traditional finance participants explore onchain dollar settlement.

The integration highlights how layer-2 networks now compete not only on throughput and fees but on the quality of their stablecoin and real-world asset infrastructure. Deep, natively-issued stablecoin liquidity reduces settlement friction for decentralized exchanges and lending protocols, while reward-sharing arrangements give networks a direct economic incentive to promote adoption.

Mantle has also posted recent growth in tokenized real-world assets. The network carried 234.2 million USD in distributed real-world asset value as of Wednesday, up 19 percent over the previous 30 days, according to data from RWA.xyz. That trajectory aligns with the network’s stated intent to position itself as a venue for institutional onchain capital allocation, where stablecoins serve as the operational rails.

The combination of a regulated, reward-sharing stablecoin and a growing tokenized asset base reflects a broader industry pattern: infrastructure providers are bundling compliant dollar instruments, institutional distribution, and real-world asset issuance into a single stack. Networks that can offer all three are better positioned to capture the wave of tokenized capital that issuers and asset managers have signaled is coming.

For Paxos, the Mantle integration extends the distribution footprint of USDG beyond the major exchanges and into the layer-2 ecosystem where much of decentralized finance activity now takes place. The Global Dollar Network’s 150-plus partner roster gives the stablecoin a distribution channel that competes with larger incumbents, and each new network partner adds a constituency with a financial stake in USDG’s growth.

Mantle users can now access natively minted USDG across the network’s decentralized finance applications. The network said adoption will roll out through its ecosystem of protocols, with the stablecoin serving as both a trading asset and a settlement instrument for institutional participants deploying capital onchain.

The launch also illustrates the intensifying competition among dollar-issuing platforms. With USDG at roughly 3.18 billion USD in market capitalization, the token remains a fraction of the size of the largest stablecoins, but its regulatory licensing, monthly reserve reporting, and partner reward model give it a differentiated pitch to institutions weighing which onchain dollars to hold.

As stablecoin regulation solidifies in major markets, the battle for distribution is expected to shift toward exactly these kinds of partnerships, where networks, exchanges, and issuers share the economics of circulation. Mantle’s entry into the Global Dollar Network is the latest move in that contest, and it will not likely be the last layer-2 to negotiate native issuance terms with a major issuer.