Paxos set to expand to Arbitrum, an Ethereum Layer 2 network

Stablecoin issuer Paxos is set to launch its products on the Ethereum Layer 2 blockchain, Arbitrum One, as it expands its services.

While it is unclear which specific products Paxos will launch on Arbitrum, Luke Xiao, fintech partnership lead at Offchain Labs, the developer of Arbitrum, said in a statement on Tuesday that Paxos has decided to bring its stablecoin issuance and regulated tokenization platform to Arbitrum. "We're excited to see the transformative impact this will have on DeFi and the broader Arbitrum ecosystem," Xiao added.

Arbitrum One is one of the largest L2 networks, with over $2.5 billion in total value locked. "Arbitrum is known for its speed, security and scalability, which is critical to driving long-term adoption of digital assets across industries," Walter Hessert, head of strategy at Paxos, said in a statement. "In the next three years, the adoption of stablecoins by both retail and institutional user will explode and Paxos will drive that paradigm shift."

Paxos' select stablecoins are currently available on Ethereum, the Polygon proof-of-stake network, and Solana, according to its website.