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LayerZero has joined the Global Dollar Network to provide interoperability infrastructure for USDG, Paxos’s regulated stablecoin. The partnership introduces USDG0, an omnichain version of the stablecoin that can move seamlessly across blockchain ecosystems without requiring separate wrapped versions on each chain.
What USDG0 actually does
USDG0 launched on November 18, 2025, built on LayerZero’s Omnichain Fungible Token (OFT) standard. Instead of Paxos needing to natively issue USDG on every blockchain individually, LayerZero’s technology lets the stablecoin travel to chains where Paxos doesn’t have direct issuance set up.
This is a meaningful distinction from how most stablecoins work today. Typically, when you move a stablecoin from one chain to another, you end up with a “wrapped” version, essentially an IOU that represents the original token. Wrapped tokens introduce extra trust assumptions and liquidity fragmentation. USDG0 sidesteps that entirely by maintaining a unified token standard across chains.
USDG itself is backed 1:1 by US dollars and holds regulatory approvals in both Singapore and Europe. USDG has surpassed $3.1 billion in circulation as of November 2025, growing from under $1 billion just seven months earlier.
The Global Dollar Network’s unusual business model
The Global Dollar Network, which launched in late 2024, operates on a model that flips the traditional stablecoin playbook. Most stablecoin issuers keep the vast majority of reserve yields for themselves. Tether, for example, has been famously profitable precisely because it sits on tens of billions in Treasury bills and passes almost none of that yield to partners or users.
GDN takes a different approach. The network redistributes a substantial portion of the reserve yields generated through USDG activities back to its partners. That revenue-sharing structure has attracted more than 150 enterprise partners, including Mastercard and OKX.
LayerZero’s expanding infrastructure role
For LayerZero, this partnership is part of a broader pattern. The protocol already supports similar omnichain mechanisms for other stablecoins, positioning itself as a plumbing layer for dollar-backed digital assets moving across chains.
What this means for investors
The growth from under $1 billion to over $3.1 billion in roughly seven months is notable. USDG’s acceleration suggests genuine demand, likely driven by the economic incentives GDN offers its partners.
For traders specifically, USDG0’s cross-chain capabilities could improve capital efficiency. Moving stablecoins between chains without wrapped token friction means faster arbitrage execution and fewer liquidity silos.
The risk side of the equation centers on execution and regulatory durability. Holding approvals in Singapore and Europe is valuable today, but regulatory frameworks for stablecoins are still evolving rapidly. Any adverse changes in those jurisdictions could impact USDG’s growth trajectory. Additionally, LayerZero’s cross-chain messaging layer introduces its own set of smart contract risks that users should factor into their decisions when moving significant capital across chains.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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