Paxos will integrate with Arbitrum to boost its Ethereum ecosystem position and drive institutional adoption of on-chain real-world assets.
In an effort to increase its influence within the Ethereum ecosystem, stablecoin issuer Paxos has decided to merge with Ethereum’s layer-2 scaling solution, Arbitrum.
Paxos stated in a press statement dated September 10 that this is the company’s first layer-2 network integration, highlighting its dedication to increasing institutional adoption.
According to the press release, the breakthrough is anticipated to make it easier for real-world assets to be added to the blockchain, increasing the usefulness and accessibility of digital assets for businesses and organizations.
Paxos did not, however, say which products it intended to launch on the network. According to data from DefiLlama, Arbitrum was launched in 2021 and has since raised over $2.5 billion.
It also has over 520,840 active on-chain addresses and almost 700 decentralized applications. In highlighting the importance of this relationship, Luke Xiao, lead for Fintech partnerships at Arbitrum, said that Paxos has chosen to “bring their stablecoin issuance and regulated tokenization platform to Arbitrum.”Â
Paxos eyes stablecoin growth as SEC investigation ends
Head of strategy at Paxos, Walter Hessert stated that the company hopes to expedite the blockchain’s integration of physical assets with this partnership, predicting that “in the next three years, the adoption of stablecoins by both retail and institutional users will explode.”
This announcement comes after the U.S. Securities and Exchange Commission (SEC) closed its investigation into Paxos regarding the stablecoin Binance USD, marketed under the Binance name.
As previously reported, Paxos was accused by the SEC of marketing unregistered securities through BUSD in February 2023, and as a result, the SEC ordered that minting stop.
With the investigation being complete, Paxos may concentrate on its newest projects. The investigation was a part of the larger “Operation Choke Point 2.0” campaign against cryptocurrency service providers.
