Paxos will integrate with Arbitrum to enhance its presence in Ethereum’s ecosystem and facilitate institutional adoption of on-chain real-world assets.
Stablecoin issuer Paxos will integrate with Arbitrum (ARB), the Ethereum layer-2 scaling solution, in a move aimed at expanding its reach within the Ethereum ecosystem. In a Sept. 10 press release, Paxos announced that this is its first integration with a layer-2 network, underscoring its commitment to broadening institutional adoption.
The development is expected to facilitate the onboarding of real-world assets onto the blockchain, enhancing the utility and accessibility of digital assets for enterprises and institutions, according to the press release. However, Paxos did not specify which products it plans to roll out on the network.
Launched in 2021, Arbitrum has allocated over $2.5 billion and boasts more than 520,840 active on-chain addresses as well as nearly 700 decentralized applications, according to data from DefiLlama. Arbitrum’s fintech partnership lead, Luke Xiao, emphasized the significance of this collaboration, stating that Paxos has decided to “bring their stablecoin issuance and regulated tokenization platform to Arbitrum.”
Paxos eyes stablecoin growth as SEC investigation ends
Walter Hessert, head of strategy at Paxos, said that with the collaboration, the firm aims to accelerate the integration of real-world assets into the blockchain, noting that “in the next three years, the adoption of stablecoins by both retail and institutional users will explode.”
This announcement follows the closure of a U.S. Securities and Exchange Commission (SEC) investigation into Paxos over its Binance-branded stablecoin, Binance USD. As reported by crypto.news earlier, the SEC had issued a Wells Notice in February 2023, accusing Paxos of offering unregistered securities through BUSD and subsequently ordering the cessation of minting.
The inquiry, part of the broader “Operation Choke Point 2.0” crackdown on crypto service providers, has now been concluded, allowing Paxos to focus on its new initiatives.