Paxos' USDG0 Merges Compliance with Cross-Chain DeFi Innovation

Paxos Labs has launched USDG0, an omnichain extension of its regulated USDG stablecoin, to expand dollar-backed liquidity across multiple blockchain ecosystems. The new token, built on LayerZero's OFT (Omni-Fi Token) standard, allows USDG to move seamlessly between chains while maintaining its regulatory compliance and 1:1 U.S. dollar backing. This move aims to integrate regulated stablecoin infrastructure with decentralized finance (DeFi) platforms such as Hyperliquid, Plume, and Aptos, enabling features like yield-aligned trading and modular DeFi applications according to a Cointelegraph report.

The initiative underscores growing demand for stablecoins beyond crypto trading, with the global stablecoin market surpassing $300 billion in market capitalization in October 2025, according to a Binance Research report. Daily transaction volumes averaged $3.1 trillion, while B2B payments via stablecoins hit $10 billion monthly. However, trading still accounts for 88.2% of total transaction value, highlighting the sector's evolving use cases.

Paxos's USDG0 differentiates itself by avoiding the creation of wrapped token versions, instead allowing the same asset to function natively across Ethereum, Solana, Ink, X Layer, and now Hyperliquid, Plume, and Aptos. This approach preserves regulatory protections while enabling cross-chain composability. The company, which oversees $180 billion in tokenization activity since 2018, also manages USDP, PayPal's PYUSD, and USDG.

The stablecoin landscape is intensifying as regulatory clarity in the U.S. (via the GENIUS Act) and Europe (MiCA framework) accelerates adoption. While Tether's USDT and Circle's USDC dominate 84% of the market, new entrants like Obex-a $2.5 billion stablecoin incubator-are emerging. Obex, backed by Sky Protocol, aims to fund yield-generating stablecoin projects, reflecting broader institutional interest.

Institutional participation is further boosted by products like the 15% yield offering from Figment, OpenTrade, and Crypto.com, targeting institutional investors seeking stable returns. Meanwhile, StakeMyGold introduced a 12% APR on gold-backed stablecoins, leveraging DeFi protocols to outperform traditional gold-yielding platforms.

Paxos's USDG0 highlights the convergence of regulated infrastructure and DeFi, positioning stablecoins as a bridge for "trusted money" across borders. As the market grows, competition among issuers and innovators like Obex and StakeMyGold signals a shift toward diversified, yield-driven stablecoin ecosystems.