Mantle has added USDG as a natively issued stablecoin on its network through a partnership with Paxos, giving the Ethereum layer-2 chain a direct connection to the Global Dollar Network and expanding the range of dollar-based assets available for on-chain trading, lending and tokenized-asset settlement.
The launch makes Mantle a network partner in the Global Dollar Network, an ecosystem created around USDG. Mantle said the network includes more than 150 partners, while Paxos and Mantle placed USDG circulation above $3 billion. Mantle later said the supply had exceeded $3.5 billion, indicating rapid growth in the stablecoin’s issuance.
Native issuance means USDG is minted for use on Mantle rather than simply being bridged from another blockchain. That structure can reduce dependence on third-party bridge contracts and gives decentralized applications on Mantle a dollar asset designed to move directly through the network’s own infrastructure.
Paxos said USDG is redeemable one-for-one for U.S. dollars. The company also publishes monthly reserve reports for the stablecoin, providing regular visibility into the assets supporting outstanding tokens.
Mantle adds another regulated dollar asset
USDG joins a growing stablecoin lineup on Mantle that includes Agora’s AUSD, Ethena’s USDe, Ondo’s USDY and Tether’s USDT0. The mix reflects Mantle’s effort to serve different corners of on-chain finance rather than relying on a single dollar token for payments, collateral and yield products.
Some of those assets have distinct structures. USDY, for example, is tied to tokenized U.S. Treasury exposure, while USDe uses a crypto-native hedging model. USDG is positioned as a fiat-backed dollar stablecoin issued by Paxos, a company that has built its business around regulated digital-asset issuance and custody.
Mantle reported that stablecoin total value locked on its network has passed $982 million. It also said tokenized real-world-asset value locked rose from around $22 million to roughly $240 million during the past year. The figures, reported by Mantle, point to a network increasingly focused on bringing conventional financial instruments and settlement assets on-chain.
The network said it now supports more than 700 tokenized assets, including equities, exchange-traded funds, commodities, U.S. Treasuries, asset-backed credit products and stablecoins. A native USDG pool could make those assets easier to price, trade or use as collateral within Mantle-based applications, since users would have an additional on-chain dollar unit for settlement.
Global Dollar Network expands beyond issuance
Paxos launched the Global Dollar Network as a distribution framework for USDG, with participating companies intended to help make the stablecoin available across payments, wallets, blockchains and financial applications. Mantle’s entry extends that model to a network seeking to build liquidity around both stablecoins and tokenized assets.
Bhagwan “Bao” Chen, a key advisor at Mantle and head of spot at Bybit, said Mantle’s work over the past year had focused on access to real-world assets alongside an expanding stablecoin stack. Mantle identified AUSD, USDe, USDY and USDT0 as existing components of that stack.
Ronak Daya, head of strategy at Paxos, said the partnership includes native USDG issuance and adds Mantle to the Global Dollar Network’s partner group.
For Mantle, the partnership is less about offering another interchangeable stablecoin than about connecting its tokenized-asset market to an issuer with a large and growing dollar-token supply. Liquidity is often fragmented across chains and across dollar assets with different redemption rules, reserve structures and user bases. Native USDG gives applications built on Mantle another route to settle transactions without requiring users to leave the network or rely on wrapped versions of the asset.
Regulatory framework and redemption rights
Paxos said USDG operates under regulatory oversight in Singapore and within the European Union’s Markets in Crypto-Assets, or MiCA, framework. The details matter for users evaluating stablecoins, because legal claims on reserves and issuer obligations can differ by jurisdiction.
In the European Union, Paxos said USDG is issued through Paxos Issuance Europe OY, known as PIE. The company said EU USDG holders have the right to redeem tokens against PIE at par value at any time, subject to the applicable terms. That gives holders a direct stated redemption claim against the European issuer rather than relying solely on secondary-market liquidity.
Monthly reserve reporting offers a recurring disclosure mechanism, though users and protocols will continue to assess USDG alongside other stablecoins based on liquidity, redemption access and the venues where it is accepted as collateral.
Mantle’s reported stablecoin and real-world-asset growth suggests that these choices are becoming more consequential on the network. A chain with tokenized Treasuries, equities and credit products needs dollar liquidity that can support routine trades and collateral movements, not only speculative swaps. USDG’s native arrival gives Mantle another settlement option as it tries to turn its expanding tokenized-asset catalog into a more connected on-chain market.
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