Paxos Labs and LayerZero Unveil USDG0, Broadening Global Dollar's Reach

Blockchain infrastructure provider Paxos Labs, in partnership with LayerZero, the leading omnichain interoperability protocol developer, unveiled a new token to accelerate the adoption of dollar-pegged stablecoin Global Dollar, USDG.

The new token, USDG0, representing the bridged version of Paxos Digital Singapore's USDG, is designed to extend the accessibility of USDG into additional blockchain ecosystems using LayerZero's Omnichain Fungible Token (OFT) standard, according to a press release shared with CoinDesk on Tuesday.

Bhau Kotecha, co-founder of Paxos Labs, described USDG0 as "the next evolution of stablecoin infrastructure where trust, interoperability, and user experience converge," emphasizing the goal of making trusted and transparent digital dollars truly borderless.

USDG0 operates as a bridged counterpart to USDG, a regulated stablecoin pegged 1:1 to the USD and supported by reserves at regulated institutions worldwide.

The token enables seamless cross-chain transfers to networks where USDG's native minting is not yet available, preserving the stablecoin's compliance, transparency and full backing. In other words, it expands USDG's reach beyond blockchains such as Solana, Ethereum, Ink and X Layer, which natively issue and redeem the stablecoin.

How does USDG0 work?

When users bridge USDG from a native chain such as Ethereum, USDG0 is minted on the destination network using LayerZero’s OFT protocol. At the same time, an equivalent amount of USDG remains locked in audited smart contracts.

LayerZero's OFT Standard lets tokens exist natively across every supported chain. When you move tokens from one chain to another, they are burned on one chain and minted on another, keeping the total supply perfectly synchronized on a 1:1 basis. Unlike traditional bridges that rely on wrapped tokens or liquidity pools, causing delays and slippage, OFT transfers occur instantly, limited only by the finality speed of the source chain.

"One million USDG0 can be sent across chains for the same price (gas on source chain) as sending 1 USDG0," LayerZero's spokesperson told CoinDesk.

The USDG0 launch is paired with an infrastructure stack developed by Paxos Labs, including user-friendly portals for instant transfers, asynchronous liquidity provisioning for large trades, and developer APIs for easy integration into protocols and applications.

This setup aims to enhance operational efficiency and minimize fees for both retail and institutional users.

LayerZero's CEO Bryan Pellegrino highlighted the innovation USDG0 brings to cross-chain asset mobility, allowing users to transfer digital dollars rapidly and without slippage, effectively transforming the digital movement of money at internet scale.