Paxos International, based in the United Arab Emirates, has announced the launch of Lift Dollar, with the ticker symbol USDL. The stablecoin will offer returns to its holders, and it will only be available in eligible markets.
The stablecoin issuer plans to establish partnerships with other players within the crypto industry to expand the distribution of its USDL stablecoin. Paxos International will offer USDL holders the opportunity to earn yields from the returns generated from its reserves.
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The stablecoin issuer, Paxos International, is regulated by the Financial Services Regulatory Authority (FSRA), which is the financial regulatory body of Abu Dhabi Global Markets (ADGM). According to the announcement, the USDL will not be available to residents of the United States, United Kingdom, Canada, Hong Kong, Singapore, Japan, the European Union, and the United Arab Emirates except ADGM.
Paxos International’s USDL will pay daily yields
Today, Paxos International announced the launch of Lift Dollar ($USDL) – a yield-bearing stablecoin that democratizes access to US dollars and safe yield generated from cash and cash equivalent assets. Now, you can seamlessly spend, save and trade, all while earning yield.
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— Paxos (@Paxos) June 5, 2024
According to Paxos International, the USDL will use an Ethereum smart contract to issue yields generated from the reserves. The smart contracts will confirm wallet addresses holding USDL and credit returns on a daily basis. The report mentions that the Lift Dollar stablecoin will be issued on the permissionless Ethereum blockchain. The Lift Dollar yields will be programmatically delivered to USDL token holders.
The release also details that the stablecoin issuer independently determines the amount to be paid to USDL token holders. The international stablecoin issuer will make the payments based on prevailing market conditions. The announcement also highlights that Paxos International will withhold an issuer fee before paying the rest of the yields to USDL token holders.
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The stablecoin issuer also urged other interested organizations in the eligible markets to reach out to Paxos International to establish an onboarding process. Paxos International is optimistic that the market is ready for USDL with its unique selling proposition (USP).
In an announcement posted to Paxos’ blog, Charles Cascarilla, the CEO and co-founder of Paxos claimed that the existing centralized stablecoin issuers are benefiting from the economics of stablecoin reserves.
“…USDL is a first-of-its-kind—a regulated product, earning and paying safe yield on a daily basis. Until now, only centralized issuers have benefitted from the economics of stablecoin reserves. Paxos International has reimagined this dynamic so that all token holders can safely use and grow their regulated USD stablecoin holdings. Our vision is a more democratic, inclusive and accessible financial market. USDL is a pivotal step towards achieving that goal.”
Charles Cascarilla
The Head of Product at Paxos International also clarified that USDL will benefit both issuers and crypto investors. He mentioned that the stablecoin issuer will use rebasing, a technical mechanism to re-distribute returns to USDL holders.
Cryptopolitan reporting by Collins J. Okoth
