- Paxos partners with Arbitrum to promote the institutional usage of on-chain assets.
- This collaboration improves the tokenization of real-world assets using Arbitrum’s cost-effective network.
- Paxos is concentrating on the expansion of stablecoins following an SEC inquiry, encouraging long-term digital asset utilization.
Stablecoin issuer Paxos has declared its partnership with Arbitrum, the foremost Layer 2 scaling solution for Ethereum. This integration signifies Paxos’ inaugural venture into a Layer 2 network, representing a crucial milestone in promoting institutional adoption of on-chain assets.
As per a press statement from Arbitrum and Paxos, the collaboration seeks to introduce real-world asset tokenization into the Arbitrum ecosystem, capitalizing on its high-speed, low-cost framework to increase the utility of digital assets for businesses.
Paxos Engaging with Arbitrum’s DeFi Landscape
By teaming up with Arbitrum, Paxos gains access to Ethereum’s extensive liquidity, enabling quicker transactions and lower costs that are essential for institutions adopting blockchain solutions.
Since its debut in 2021, Arbitrum has rapidly turned into one of the leading ecosystems in decentralized finance (DeFi), with over 520,000 active addresses and close to 700 decentralized applications.
This integration not only provides Paxos with access to Arbitrum’s ecosystem but also allows for an expansion within the Ethereum community, making digital assets more accessible to both retail and institutional users.
Capitalizing on the Growth of Stablecoins
Paxos’ entry into the Arbitrum arena coincides with a period of anticipated acceleration in stablecoin growth, especially following the completion of an SEC investigation concerning the company’s Binance-branded stablecoin, BUSD.
With regulatory challenges now behind them, Paxos is gearing up to facilitate the integration of real-world assets onto the blockchain.
Luke Xiao, the Fintech Partnership Lead at Arbitrum, emphasized the revolutionary impact that Paxos’ tokenization platform will have on the DeFi landscape. Walter Hessert, Paxos’ Head of Strategy, reaffirmed these views, stating that the partnership will catalyze the long-term adoption of digital assets.
As Paxos and Arbitrum collaborate to transition real-world assets onto the blockchain, this partnership is poised to transform institutional involvement with blockchain technology and spark the next wave of innovation in digital finance.
