Paxos integrates with Arbitrum for institutional on-chain assets adoption
Paxos integrates with Arbitrum to expand institutional adoption of on-chain assets.
The partnership enhances real-world asset tokenization using Arbitrum’s low-cost network.
Paxos focuses on stablecoin growth post-SEC inquiry, driving long-term digital asset use.
Stablecoin issuer Paxos has announced its integration with Arbitrum, Ethereum’s leading Layer 2 scaling solution. The integration marks Paxos’ first foray into a Layer 2 network, signifying a significant step toward facilitating institutional adoption of on-chain assets.
According to a press release issued by Arbitrum and Paxos, the collaboration aims to bring real-world asset tokenization to the Arbitrum ecosystem, leveraging its high-speed, low-cost infrastructure to enhance the utility of digital assets for enterprises.
Paxos tapping into Arbitrum’s DeFi ecosystem
By integrating with Arbitrum, Paxos taps into Ethereum’s deep liquidity, enabling faster transactions and reduced costs, which are crucial for institutions seeking to adopt blockchain technology.
Arbitrum, which launched in 2021, has quickly grown to become one of the most robust ecosystems in decentralized finance (DeFi), boasting over 520,000 active addresses and nearly 700 decentralized applications.
In addition to offering Paxos access to Arbitrum’s ecosystem, this integration will also allow Paxos to expand its reach within the Ethereum ecosystem, enhancing the accessibility of digital assets for both retail and institutional users.
Leveraging the stablecoin growth
Paxos’ entry into Arbitrum comes at a time when stablecoins growth is poised to accelerate, following the conclusion of an SEC investigation into the company’s Binance-branded stablecoin, BUSD.
With the regulatory hurdles behind it, Paxos is now focused on driving the integration of real-world assets onto the blockchain.
Luke Xiao, Fintech Partnership Lead at Arbitrum, highlighted the transformative impact of Paxos’ tokenization platform on the DeFi ecosystem. Walter Hessert, Paxos’ Head of Strategy, echoed these sentiments, stating that the partnership would drive long-term adoption of digital assets.
As Paxos and Arbitrum work together to bring real-world assets on-chain, this collaboration is set to reshape institutional engagement with blockchain technology and fuel the next wave of innovation in digital finance.
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