Every trade has two sides. There's the one you choose to make: buy/sell, long/short, and the one you don't: the currency you settle it in. Most traders place all their attention in the first one, right until the second one costs them (the de-peg weekend, or the withdrawal that quietly priced in a conversion fee).

That weight grows even further depending on what you trade. On a single-asset venue, you can almost ignore it. On a cross-asset one like Arcus, the settlement currency becomes the common ground the whole account stands on. It’s your margin. It's your funding. It's the unit your PnL is denominated in, and the collateral every position is measured against.

When one asset carries that much weight, the bar it has to clear is simple and unforgiving: it should be seamless. You should not need to mull over it it, and to not mull over it, it has to be solid and, frankly, boring.

A Dollar You Can Trust

Today, Arcus is announcing its partnership with Paxos Labs.

Every market on Arcus settles in USDG, as its primary form of collateral and settlement, the first of several: multi-asset collateral, including BTC, ETH, and Stock Tokens, is on the Arcus' roadmap, with USDG remaining the unit everything is quoted and settled in at launch.

USDG is issued by Paxos Trust Company for Global Dollar Network, with Robinhood among the network participants, and is redeemable 1:1 for U.S. dollars with reserves backed by cash and short-duration U.S. Treasuries in segregated custody.

Paxos Labs supports Arcus in enabling the platform and its users to move into and access USDG on Robinhood's native network. Stock Tokens trade against it, and perpetuals are quoted, margined, and funded in it.

What this Means for Users

With USDG being backed by strict regulatory oversight, transparency requirements and capital frameworks, the scrutiny is done before you deposit. The dollar can trickle down your list of things to worry about and what that leaves you with is friction that isn't there:

1. No FX fees: Every market is quoted, margined, and settled in USDG at launch, so there's never a currency conversion between your capital and your trade.

   
   

2. One unit of account: Your quotes, funding, and PnL all read in the same dollar, with nothing to convert to see where you stand.

   
   

3. Your funds arrive in USDG: Deposit crypto, a CEX balance, or cash, and it converts to USDG on the way in, with no spread on most local currency conversions, powered by Paxos Labs.

   
   

4. Free in, free out: Zero fees on USDG deposits and withdrawals, the native path is the cheapest one too.

   
   

And this is the starting point, not the ceiling: collateral on Arcus is set to broaden: multi-asset support, including BTC, ETH, and Stock Tokens, is on the roadmap, and it won't stop there.

Why USDG and Paxos Labs

A dollar is only as boring as the issuing institution behind it is serious. USDG is issued by Paxos Digital Singapore under Global Dollar Network under MAS supervision, with EU issuance under MiCA, backed 1:1 and redeemable, with reserves published in monthly reports.

Paxos Labs provides the access layer that makes USDG native to platforms building on Robinhood Chain. Paxos Labs is incubated within Paxos, the regulated infrastructure behind $180B+ in tokenization activity, trusted by PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank. For Arcus traders, that means a regulated dollar that works from any starting point, with zero fees in and out.

The settlement currency is a position every trader on a venue is holding, whether they meant to or not. Our job was to make that position disappear. Paxos built a dollar that's regulated, backed, and redeemable; we built every market on Arcus to settle in it. Collateral on Arcus will keep broadening - the standard it has to meet was set here. If a trader never thinks about USDG, we did this right.

– Eddie Zhang, CEO, Arcus

A trader sizing a position thinks about the market, the entry, the risk, never about whether the dollar underneath will hold, redeem at par, or move when it's needed. That's the bar a settlement asset has to clear: invisible. Paxos Labs brings USDG from Global Dollar Network to Robinhood Chain so that bar is cleared before a single trade is placed on Arcus.

– Bhau Kotecha, Co-founder, Paxos Labs

Spot trading is live. Trade Stock Tokens now at app.arcus.xyz, and join the waitlist there for Equity Perpetuals.

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Arcus is a blockchain-based smart contract protocol that permits self-custodial peer-to-peer trading of Stock Tokens, cryptoassets and perpetual futures. Arcus is not a regulated financial services provider, and it is not available in the U.S., Canada, United Kingdom and other restricted jurisdictions.

Stock Tokens are tokenized securities that provide economic exposure to a relevant underlying equity instrument or ETP through a contractual claim against the Issuer for a cash Redemption. Stock Tokens involve risks not present, or not present to the same extent, in traditional stock ownership, including private-key loss or compromise, limited redemption access, liquidity constraints, price or tracking divergences from the underlying, and uncertain or evolving regulatory treatment.

Trading Stock Tokens, cryptoassets or perpetual futures is risky and involves risks of loss, particularly when using leverage. Do your own research.

This content is provided as a general tool for users to learn about or interact with Arcus on their initiative, with no endorsement or recommendation of any trading activities. Users or potential users of this content should not regard it as involving any form of recommendation, invitation or inducement to deal in Stock Tokens, cryptoassets or perpetual futures. Nothing herein should be used as legal, financial, tax, or any other form of advice.

In no event will Pocket Protector Labs Inc. or its affiliates be liable for any loss or damage arising from or in connection with the use of Arcus or this content. By continuing to access this content, you agree to the Interface Terms of Use, Protocol Terms and Privacy Policy.

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