Paxos Labs and LayerZero launched USDG0 on Tuesday, a bridged version of the USDG stablecoin that will allow it to operate on additional blockchains.

USDG, issued by Paxos, has a market capitalization of over $997 million and is fully backed 1:1 by cash and cash equivalents. The token powers the Global Dollar Network (GDN) and is currently available on Solana, Ethereum, Ink, and X Layer.

The bridged token, built on LayerZero’s Omnichain Fungible Token (OFT) standard, lets USDG move to chains where Paxos does not yet offer issuance. The rollout will start with Hyperliquid, which has over $4.5 billion in total value locked (TVL), and will expand to Plume and Aptos, the company revealed in a press release viewed by The Defiant.

The launch highlights how platforms are competing to provide stablecoins that developers and users can trust for trading, lending, and other decentralized finance (DeFi) activities.

The stablecoin market has grown sharply this year, rising to $303 billion in market capitalization from $208 billion in January, according to DeFiLlama. Tether’s USDT currently holds the largest market share with roughly 61% and a market cap of $184 billion.

“USDG0 reflects a shared vision to make the Global Dollar accessible everywhere users transact," said Ronak Daya, Head of Product at Paxos. "By extending USDG's reach through Paxos Labs and LayerZero, we’re giving every ecosystem the ability to embed trusted, economically-aligned stablecoin liquidity powered by the same foundation that underpins all Paxos-issued assets.”

When USDG is moved to a new blockchain, USDG0 is created on that chain while the same amount of USDG stays locked in secure, audited contracts. This ensures that every token is backed and compliant with regulatory standards, the release explained.

Paxos Labs will also provide supporting infrastructure, including a USDG0 Portal for instant cross-chain transfers, APIs, and liquidity systems for large transactions with low fees.

Paxos Labs is a startup that was launched by Paxos earlier this year. Paxos is the issuer of several stablecoins, including PayPal’s PYUSD and USDG. It has raised $535 million in funding from investors and is valued at $2.4 billion, according to Traxcn.

Most recently, Paxos Labs joined forces with the Aleo Network Foundation, the non-profit organization that supports the Aleo Network, to launch USAD, a U.S. dollar stablecoin. USAD will be a dollar-backed stablecoin issued on a Layer 1 blockchain with a focus on privacy, The Defiant has previously reported.