Paxos Expands with Arbitrum, Plans to Bring Its Tokenization Platform to Network
Alyssa Davidson
Posted: September 10, 2024 at 9:00 AM Updated: September 10, 2024 at 8:26 AM
Editing and fact checking: September 10, 2024, 9:00 AM
Briefly
The Arbitrum Foundation has announced that Paxos will be integrating with Arbitrum, making Arbitrum the first Layer 2 company to partner with a tokenization platform.
The Arbitrum Foundation, the organization responsible for developing and supporting the Arbitrum ecosystem, announced that Paxos, a regulated blockchain infrastructure and tokenization platform, will integrate with Arbitrum, a Layer 2 scaling solution for Ethereum.
“We are delighted that Paxos has chosen to provide Arbitrum with their stablecoin issuance and regulated tokenization platform,” said Luke Xiao, Offchain Labs’ Head of Fintech Partnerships, in a written statement. “Arbitrum’s high-performance network and robust ecosystem make it a natural home for the Paxos tokenization platform. This collaboration brings together Paxos’ industry-leading infrastructure with Arbitrum’s robust on-chain ecosystem. We look forward to seeing the transformative impact this will have on DeFi and the broader Arbitrum ecosystem,” he added.
Paxos, a regulated blockchain infrastructure and tokenization platform, provides solutions that serve as the backbone of a more efficient and transparent financial system. By providing tools to tokenize, store, and trade assets, Paxos works with global companies such as PayPal, Interactive Brokers, Mastercard, Mercado Libre, and Nubank to streamline blockchain operations.
Arbitrum will be the first Layer 2 network enabled by Paxos, joining one of the largest on-chain ecosystems in its space and expanding its presence in the Ethereum ecosystem.
This collaboration represents a significant step forward in advancing institutional adoption on the Arbitrum network and bringing real-world assets on-chain. With Arbitrum, Paxos will be able to access Ethereum liquidity while benefiting from faster transaction speeds and reduced costs. Paxos will also connect to Arbitrum’s decentralized finance (DeFi) ecosystem. This integration will allow businesses and institutions to leverage these benefits, creating opportunities to develop new financial products and services.
Paxos follows a strict regulatory framework to ensure that tokenization services are compliant with financial regulations in various regions. By incorporating trust and reliability into the platform, it provides secure support to major enterprises and institutions that can leverage Arbitrum’s scalable and efficient network.
“We are excited to work with Arbitrum to bring more real-world assets on-chain,” Walter Hessert, head of strategy at Paxos, said in a written statement. “Arbitrum is known for its speed, security, and scalability, which are critical to driving the long-term adoption of digital assets across industries. Over the next three years, we will see an explosion in stablecoin adoption among both retail and institutional users, and Paxos will be leading this paradigm shift,” he added.
Offchain Labs Continues to Strengthen Connections with Ethereum
Offchain Labs is a company that has been focused on blockchain research and development for over 5 years. As a key contributor to Arbitrum, they have played a key role in shaping the industry by developing leading network scaling solutions.
Building on this foundation, Offchain Labs is innovating and improving products such as Prysm, Arbitrum Orbit, Stylus, and Arbitrum Nitro. In October 2022, the company acquired Prysmatic Labs, a leading consensus client for Ethereum, strengthening its connection to Ethereum and further aligning Offchain Labs with the Ethereum ecosystem.
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About the Author
A dedicated journalist for MPost, Alyssa specializes in the vast areas of cryptocurrencies, zero-knowledge proofs, investments and Web3. She has a keen eye for emerging trends and technologies, and provides comprehensive coverage to inform and engage readers in the ever-evolving digital finance landscape.
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Alyssa Davidson
A dedicated journalist for MPost, Alyssa specializes in the vast areas of cryptocurrencies, zero-knowledge proofs, investments and Web3. She has a keen eye for emerging trends and technologies, and provides comprehensive coverage to inform and engage readers in the ever-evolving digital finance landscape.
More Articles