Paxos, a leading tokenization platform, will integrate Arbitrum, marking its first foray into the Ethereum layer-2 ecosystem, according to a Sept. 10 statement shared with CryptoSlate.

This move aims to streamline institutional integration on Arbitrum for on-chain tokenization of real-world assets.

Using Arbitrum, Paxos will tap into Ethereum's liquidity, benefiting from faster speeds and lower costs. This move will also allow enterprises and institutions to leverage DeFi capabilities, driving innovation in financial products and services.

Both platforms are set to bring tokenized assets to the Arbitrum protocol soon. Details about these products have yet to be released.

Meanwhile, Paxos' regulated framework would ensure its tokenization offerings comply with financial regulations. Further, the integration will allow its institutional clients to benefit from Arbitrum's scalable and efficient infrastructure.

According to L2Beats data, Arbitrum is the largest Ethereum network, controlling around 40% of the layer-2 ecosystem, far ahead of rivals like Optimism and the Coinbase-backed Base network.

Luke Xiao, Fintech Partnership Lead at Offchain Labs, emphasized the collaboration's impact on Arbitrum and the broader DeFi landscape.

Xiao expressed enthusiasm about introducing stablecoin issuance and regulated tokenization through Paxos on Arbitrum.

Xiao stated:

"Arbitrum's high performance network and robust ecosystem makes it a natural home for Paxos' tokenization platform. This collaboration brings together Paxos' industry-leading infrastructure and Arbitrum's robust onchain ecosystem. We're excited to see the transformative impact this will have on DeFi and the broader Arbitrum ecosystem."

Walter Hessert, Paxos' Head of Strategy, expressed optimism about the partnership and highlighted its potential to drive the widespread adoption of stablecoins. He said: