Paxos International, an affiliate of Paxos based in the UAE, recently announced the launch of Lift Dollar (USDL). USDL is a USD-denominated yield-bearing stablecoin that is available to users globally. Paxos International plans to partner with global exchanges, wallets, and platforms to distribute USDL to both individuals and institutions.
USDL Regulations
Lift Dollar (USDL) parent company, Paxos International, is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM). This release follows the trend set by major stablecoin issuers like Tether and Circle, who earn significant interest from the T-Bills they hold. This has spurred the development of various yield-sharing stablecoins and blockchain-based U.S. Treasury products.
FSRA is known for its strong regulatory framework and dedication to promoting innovation in financial services. Under the FSRA’s license, Paxos International must hold only high-quality liquid assets to back USDL, including US dollar deposits, short-duration US treasuries, and cash equivalents.
USDL Structure
According to Paxos CEO Charles Cascarilla, the new Lift Dollar is structured similarly like the firm’s other stablecoins, such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). These stablecoins are matched 1:1 with dollars and backed by short-term U.S. government securities.
Cascarilla emphasized that USDL stands out in the market because holders earn overnight yield from short-term, high-quality liquid U.S. government securities and cash-equivalent reserve assets.
USDL uses an Ethereum smart contract to distribute yield generated from its reserves to eligible wallet addresses daily without requiring any additional action from the token holder. This creates a seamless experience as USDL wallet balances increase every day. Paxos retains an issuer fee and pays out the remaining yield based on current daily market conditions. Companies in permitted jurisdictions interested in integrating USDL into their platforms can onboard Paxos International.
Paxos USDL will not be available in the U.S. due to a lack of regulatory guidance. At launch, USDL will focus on Argentina. According to a press release, it will be available through distribution partners. These distribution partners include Ripio, Buenbit, and TiendaCrypto.
Final Words
Paxos International’s new release of its yield-generating stablecoin, Lift Dollar maintains a 1:1 parity with the US dollar, allowing consumers to redeem their tokens for fiat currency anytime.
Frequently Asked Questions
Is Paxos a Stablecoin?
Yes, Paxos is a stablecoin.
Who Founded Paxos?
Charles Cascarilla and Rich Teo founded Paxos.
What does Paxos do?
Paxos acts as a crypto brokerage clients use to provide their customers access to the cryptocurrency market.
Does Paxos have a Wallet?
Yes, Paxos has a wallet.
Is Paxos a Legit Company?
Yes, Paxos is a legitimate company.
Is Paxos available in the USA?
Yes, Paxos is available in the USA.
Does Paxos have an app?
Yes, Paxos has an app.
