Paxos and the Arbitrum Foundation say the infrastructure firm will now integrate with Arbitrum, a Layer 2 (L2) scaling solution for Ethereum. According to a company statement, Arbitrum is the first L2 network to connect with Paxos.
Paxos is a compliance-first blockchain ecosystem that can power tokenization. The company aims to shape the future of digital assets within the financial industry.
The two companies claim the partnership will further institutional utilization using Arbitrum while enabling more real world assets on-chain. Arbitrum provides a more robust and scalable environment for Ethereum based assets.
Luke Xiao, Fintech Partnership Lead at Offchain Labs, said Arbitrum’s high-performance network is a natural home for Paxos’ tokenization platform.
Walter Hessert, Head of Strategy at Paxos, said they are excited to collaborate with Arbitrum to bring more real-world assets on-chain.
“Arbitrum is known for its speed, security and scalability, which is critical to driving long-term adoption of digital assets across industries. In the next three years, the adoption of stablecoins by both retail and institutional user will explode and Paxos will drive that paradigm shift. “
Offchain Labs is an original contributor to Arbitrum.
Paxos and Arbitrum plan to bring assets to the protocol shortly. In October 2022, Offchain Labs acquired Prysmatic Labs, a top consensus client for Ethereum, further cementing its alignment with Ethereum.
