Paxos integrates with Arbitrum to expand institutional adoption of on-chain assets. The partnership will enhance tokenization of real-world assets using Arbitrum's low-cost network. Paxos focuses on growth of stablecoins following SEC investigation and promotes long-term use of digital assets.
Stablecoin issuer Paxos has announced an integration with Arbitrum, the leading layer-2 scaling solution for Ethereum. The integration marks Paxos’ first foray into layer-2 networks and marks a significant step in accelerating institutional adoption of on-chain assets.
According to a press release issued by Arbitrum and Paxos, the partnership aims to leverage high-speed, low-cost infrastructure to increase the utility of businesses’ digital assets and bring tokenization of real-world assets to the Arbitrum ecosystem.
Paxos taps into Arbitrum's DeFi ecosystem
By integrating with Arbitrum, Paxos will be able to leverage Ethereum's deep liquidity to enable faster transactions and lower costs, which are crucial for institutions looking to adopt blockchain technology.
Launched in 2021, Arbitrum has quickly grown into one of the most robust ecosystems in decentralized finance (DeFi), boasting over 520,000 active addresses and approximately 700 decentralized applications.
The integration will not only give Paxos access to Arbitrum’s ecosystem, but also expand its reach within the Ethereum ecosystem, making digital assets more accessible to both retail and institutional users.
Leveraging the growth of stablecoins
Paxos’s entry into Arbitrum comes at a time when stablecoin growth is poised to accelerate following the conclusion of the SEC’s investigation into the company’s Binance-branded stablecoin, BUSD.
Now that it has overcome the regulatory hurdles, Paxos is focused on driving the integration of real-world assets onto the blockchain.
Luke Xiao, fintech partnerships lead at Arbitrum, highlighted the transformative impact Paxos' tokenization platform will have on the DeFi ecosystem, a sentiment echoed by Walter Hessert, head of strategy at Paxos, who said the partnership will drive long-term adoption of digital assets.
As Paxos and Arbitrum work together to bring real-world assets on-chain, the collaboration aims to reshape institutional engagement with blockchain technology and drive the next wave of innovation in digital finance.
