Stablecoin issuer Paxos to integrate with Arbitrum network

Paxos will integrate with Arbitrum to strengthen its presence in the Ethereum ecosystem and facilitate institutional adoption of on-chain real-world assets.

In a move aimed at expanding its reach within the Ethereum ecosystem, stablecoin issuer Paxos will integrate with Ethereum layer-2 scaling solution Arbitrum (ARB). Paxos announced in a press release on September 10 that this is its first integration with a layer-2 network, emphasizing its commitment to expanding institutional adoption.

According to the press release, the development is expected to make it easier to incorporate real-world assets onto the blockchain, increasing the usability and accessibility of digital assets for businesses and institutions. However, Paxos did not specify what products it plans to make available on the network.

Arbitrum, which launched in 2021, has raised more than $2.5 billion and has more than 520,840 active on-chain addresses, as well as nearly 700 decentralized applications, according to data from DefiLlama. Luke Xiao, Arbitrum’s fintech partnerships lead, emphasized the importance of this collaboration, stating that Paxos decided to “bring stablecoin issuances and regulated tokenization platforms to Arbitrum.”

Paxos targets stablecoin growth as SEC investigation ends

Paxos’ strategy chief, Walter Hessert, stated that they aim to accelerate the integration of real-world assets into the blockchain with the collaboration, and said, “The adoption of stablecoins by both retail and institutional users will explode in the next three years.”

This announcement comes after the US Securities and Exchange Commission (SEC) closed its investigation into Paxos’ Binance-branded stablecoin, Binance USD. As previously reported by crypto.news, the SEC issued a Wells Notice in February 2023, accusing Paxos of offering unregistered securities through BUSD and subsequently ordering it to cease printing.

The investigation, which was part of the broader “Operation Choke Point 2.0” crackdown on cryptocurrency service providers, has now concluded, allowing Paxos to focus on its new initiatives.