Paxos Labs is taking another swing at the stablecoin market — this time with a clear focus on cross-chain DeFi.
The company has announced USDG0, described as an omnichain extension of its regulated Global Dollar (USDG)stablecoin. Instead of launching yet another dollar token, Paxos is using USDG0 to move an existing, fully backed stablecoin across multiple blockchains while keeping a single, regulated supply.
According to Cointelegraph’s report, USDG0 brings “fully backed dollar liquidity” to three ecosystems at launch — Hyperliquid, Plume and Aptos — and is built using LayerZero’s Omnichain Fungible Token (OFT) standard.
In a market still dominated by Tether’s USDT and Circle’s USDC, Paxos is betting that regulation-first, omnichain stablecoins are the next stage of evolution.
From USDG to USDG0: What’s New?
To understand USDG0, you have to start with USDG itself.
Global Dollar (USDG) is Paxos’ newer U.S. dollar stablecoin, issued by Paxos Digital Singapore and Paxos Issuance Europe. It’s designed as a single-currency stablecoin fully backed 1:1 with high-quality liquid assets such as dollar deposits and short-duration U.S. government securities.
Key points about USDG:
- Pegged to the US dollar and redeemable 1:1 through Paxos.
- Issued under strict regulatory oversight – compliant with Singapore’s upcoming stablecoin framework and, in Europe, aligned with the EU’s MiCA rules via Paxos Issuance Europe.
- Initially launched on Ethereum, with plans and subsequent rollouts to additional chains like Solana, Ink and X Layer.
USDG0 doesn’t replace USDG; it extends it.
Cointelegraph reports that USDG0 uses LayerZero’s OFT standard to let USDG function as a single native asset across multiple blockchains, rather than spawning a set of wrapped or synthetic versions on each network.
Put simply:
- USDG is the regulated, fully backed stablecoin.
- USDG0 is the omnichain mechanism that lets that same stablecoin roam across different chains while preserving one regulated supply.
That approach aims to solve a long-standing headache in DeFi: fragmented liquidity caused by multiple wrapped tokens that all represent the same underlying dollar.
Where USDG0 Is Going First
At launch, USDG0 is being deployed to a trio of very different ecosystems:
- Hyperliquid – a high-growth onchain derivatives platform with billions in total value locked. USDG0 will support yield-aligned trading and new lending markets here.
- Plume Network – focused on modular DeFi and tokenized yields, using USDG0 as part of its stablecoin rails.
- Aptos – a Layer-1 blockchain built with Move, where USDG0 is expected to power enterprise-grade stablecoin infrastructure and cross-chain value flows.
Across all three, Paxos says USDG0 is meant to let apps:
- Embed regulated dollar liquidity natively in their products
- Offer yield linked to U.S. Treasury benchmarks via USDG reserves
- Transfer value between chains without traditional token bridges, instead relying on the OFT framework and Paxos’ backing
In Paxos’ own words, the initiative is framed as an example of “how regulated infrastructure meets the composability of DeFi and how trusted money becomes truly borderless.”
A Regulated Player Leaning Into DeFi
Paxos is not a new name in the stablecoin game. The company already oversees three regulated dollar-backed tokens:
- USDP, its longstanding Pax Dollar
- PYUSD, PayPal’s branded stablecoin
- USDG, the Global Dollar now being extended by USDG0
Since 2018, Paxos says it has processed more than $180 billion in tokenization volume under oversight from regulators like the New York Department of Financial Services (NYDFS) and the Monetary Authority of Singapore.
USDG is central to the Global Dollar Network, a consortium effort where partners such as Anchorage Digital, Bullish, Galaxy Digital, Kraken, Nuvei and Robinhood aim to push USDG into payments, trading and on-chain treasury use cases.
USDG0 gives that network something it didn’t have before: a native, regulated way to move USDG liquidity into newer and more experimental chains, without sacrificing regulatory status.
Regulation and Competition
USDG0 arrives at a time when global stablecoin adoption is accelerating and regulators are finally drawing clearer lines. Cointelegraph notes that regulatory clarity in the United States through the proposed GENIUS Act and in Europe via MiCA has helped push the total stablecoin market cap to around $303 billion, nearly $100 billion higher than at the start of the year, according to DeFiLlama data.
The market is still dominated by:
- Tether’s USDT
- Circle’s USDC
but the last year has seen a wave of new entrants, including Western Union’s planned USDPT on Solana, Japan’s first yen-backed stablecoin, and an upcoming euro-pegged token from a consortium of nine European banks.
In that context, USDG0 is less about raw size and more about positioning:
- Regulated from day one
- Transparent reserves and monthly reports
- Designed for institutional-grade payments, settlements and treasury, not just speculative trading
If USDG gains traction and USDG0 succeeds in carrying it safely across chains, Paxos could become the go-to provider for compliant multi-chain dollar liquidity — especially for platforms that don’t want to touch unregulated, opaque stablecoins.
Conclusion
For now, USDG0’s rollout is limited to Hyperliquid, Plume and Aptos, but both Paxos and LayerZero have hinted that more networks are on the roadmap. What’s clear is that Paxos is doubling down on the idea that the next phase of stablecoins will be:
- Regulated enough for big institutions
- Composable enough for multi-chain DeFi
- And backed by infrastructure that does more than just mint tokens
USDG0 is the latest test of that thesis — and a sign that the stablecoin wars are moving firmly into the omnichain era.