What Is Paxos’ USDG0 and Why Does It Matter?
Paxos Labs has launched USDG0, an omnichain extension of its regulated USDG stablecoin, using LayerZero’s OFT (Omnichain Fungible Token) standard to bring fully backed dollar liquidity to Hyperliquid, Plume and Aptos. The move expands Paxos’ regulated stablecoin footprint beyond its original issuance on Ethereum, Solana, Ink and X Layer. Unlike wrapped tokens or bridged versions, USDG0 operates as a single native asset across multiple blockchains. That structure allows the token to retain the same regulatory oversight, 1:1 dollar backing, and redemption guarantees that apply to USDG on its primary networks. Paxos said the goal is simple: enable developers across different ecosystems to use regulated dollar liquidity without the fragmentation and security risks associated with wrapped assets. The company noted that USDG0 demonstrates how the Global Dollar Network — Paxos’ framework for issuing compliant dollar tokens — can scale into new DeFi environments and enterprise platforms. “This is how regulated infrastructure meets the composability of DeFi and how trusted money becomes truly borderless,” Paxos said.
Investor Takeaway
How Will USDG0 Be Used Across Hyperliquid, Plume and Aptos?
Paxos highlighted that each of the launch ecosystems plans to use USDG0 in different ways that plug directly into their economic models.
- •Hyperliquid: yield-aligned trading pairs, deeper liquidity routing and new lending markets.
- •Plume: modular DeFi infrastructure, tokenized yield strategies and enterprise-grade stablecoin rails.
- •Aptos: cross-chain settlement layers, DeFi integrations and next-generation payment infrastructure.
Across all three ecosystems, USDG0 is designed to:
- •enable fast, compliant dollar transfers without bridges
- •support apps embedding dollar liquidity into core products
- •facilitate yield tied to Treasury benchmarks
- •enable omnichain value movement with unified liquidity
Because USDG0 uses the OFT standard, the token maintains a single supply across all chains, controlled by Paxos under regulated reserve requirements. This removes the complexity of minting separate supply on each chain or relying on custodial bridges that introduce additional risk.
Where Does USDG Fit Into the Broader Stablecoin Market?
Since 2018, Paxos has processed more than 180 billion dollars in tokenization flows under oversight from U.S. and global regulators. Today, the company operates three core stablecoin products:
- •USDP: Paxos’ original regulated stablecoin.
- •PYUSD: PayPal’s dollar-backed stablecoin, issued by Paxos.
- •USDG: its newer institutional-grade stablecoin, now extended by USDG0.
The launch of USDG0 arrives during a period of accelerating stablecoin expansion around the world. Regulatory clarity in the U.S. under the GENIUS Act and in Europe under MiCA has fueled a surge in activity. According to DefiLlama, the total stablecoin market cap stands at 303.44 billion dollars — up nearly 100 billion so far this year. Despite Tether’s USDt and Circle’s USDC dominating global market share, 2025 has seen new entrants emerge across several regions:
- •Western Union announced USDPT, a Solana-based stablecoin issued by Anchorage Digital Bank.
- •JPYC launched Japan’s first yen-backed stablecoin, supported by deposits and government bonds.
- •Nine European banks revealed plans for a euro-backed stablecoin launching in 2026.
The growth of new, regulated alternatives suggests a shift from speculative stablecoin usage toward payment, settlement and enterprise-grade design.
Investor Takeaway
What Does USDG0 Signal for the Future of Stablecoins?
The launch of USDG0 reflects broader changes in the stablecoin landscape:
- •Fragmentation is declining: omnichain architectures are replacing wrapped assets.
- •Regulated issuers are gaining momentum: institutions want stablecoins that meet compliance rules.
- •DeFi is converging with regulated money: platforms want composability without sacrificing security.
Paxos’ vision aligns with the direction global regulators are pushing toward: fully backed, fully redeemable dollar tokens that can move across multiple ecosystems with transparent oversight. USDG0 effectively positions the company as a bridge between compliant stablecoin issuance and multi-chain liquidity demand. For developers, USDG0 offers instant cross-chain dollar movement without bridge risk. For institutions, it offers a way to use blockchain-based settlement rails while maintaining regulatory protections. And for the broader market, it represents another step toward stablecoins becoming a foundational layer of global finance.