USDG0, a new bridged token from Paxos Labs and LayerZero, is set to push the USDG stablecoin beyond its current networks and into more DeFi apps. The rollout begins on Hyperliquid and will extend to Plume and Aptos, giving developers and traders another regulated dollar option across chains.
Key facts at a glance
- USDG0 is a bridged version of USDG, Paxos's fully backed dollar token.
- Launch sequence: Hyperliquid first, then Plume and Aptos.
- USDG market cap: about $997 million, backed 1:1 by cash and equivalents.
- Built on LayerZero's Omnichain Fungible Token (OFT) standard for cross-chain movement.
- Hyperliquid holds more than $4.5 billion in total value locked (TVL).
What USDG0 does
USDG0 makes USDG usable on blockchains where Paxos doesn't natively issue tokens yet. When users move USDG to a new chain, the original USDG stays locked in audited smart contracts, and the same amount of USDG0 is minted on the destination chain.
This design keeps a 1:1 backing while meeting compliance needs. It also helps developers plug a trusted dollar into apps for trading, lending, and payments without waiting for direct issuance on each chain.
How the bridge works, in plain English
LayerZero's OFT standard is the messaging layer that coordinates the lock-and-mint process. Think of it like checking a coat: the original USDG is securely checked in, and a claim ticket (USDG0) is issued on the other chain. When you redeem, the claim ticket is burned, and the original USDG is released.
First stops: Hyperliquid, then more
The initial deployment is on Hyperliquid, a fast-growing ecosystem with over $4.5 billion in TVL. Paxos says USDG0 support will follow on Plume and Aptos, widening access to regulated dollar liquidity for those communities.
Why this matters for DeFi
Stablecoins are the rails that power on-chain trading and lending. A regulated, fully backed token that can travel across chains can lower friction for users and reduce the need to juggle multiple stablecoins.
This move also turns up the heat in a crowded market. Tether's USDT still dominates with roughly 61% share and a $184 billion market cap, but demand is rising across the board. Total stablecoin value climbed from $208 billion in January to about $303 billion, according to DeFiLlama.
The Global Dollar Network
USDG powers the Global Dollar Network (GDN), an effort by Paxos to make a compliant digital dollar widely available. Today, USDG is on Solana, Ethereum, Ink, and X Layer. USDG0 extends that reach without waiting for new native issuances.
Tools for builders and big transfers
Paxos Labs plans to support USDG0 with a dedicated portal for fast, cross-chain moves. It will also offer APIs and liquidity services aimed at large transactions with low fees, making it easier for exchanges, wallets, and apps to integrate.
What Paxos is building toward
Paxos Labs is a new startup launched by Paxos this year. Paxos issues several stablecoins, including PayPal's PYUSD and USDG, and has raised $535 million with a $2.4 billion valuation, according to Traxcn.
In a recent effort to broaden its product line, Paxos Labs teamed up with the Aleo Network Foundation to develop USAD, a dollar-backed stablecoin built for a privacy-focused Layer 1. It suggests Paxos is pursuing both compliance and new use cases like private transactions.
What to watch next
- Adoption: Will exchanges, wallets, and lending markets integrate USDG0 quickly?
- Liquidity depth: How fast does on-chain liquidity grow on Hyperliquid, then Plume and Aptos?
- Security and standards: Can OFT-based bridging maintain strong security as volumes climb?
- Competition: Do USDT, USDC, and other issuers respond with new cross-chain features?
Bottom line: USDG0 aims to make a regulated, fully backed dollar usable almost anywhere in crypto. If adoption follows, it could tighten spreads, simplify cross-chain activity, and give builders a consistent dollar unit across more blockchains.