Paxos, a well-known platform for cryptocurrency trading, has recently introduced a groundbreaking stablecoin named Lift Dollar (USDL) that offers the unique feature of generating income. This development falls under the oversight of the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE, establishing Paxos International as the official issuer of this stablecoin.
The new stablecoin has entered the market as an appealing option for investors, backed by short-term US government bonds and protected against insolvency risks. Charles Cascarilla, the CEO of Paxos, has likened USDL to other stablecoins like PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), maintaining a 1:1 ratio with the US dollar.
Cascarilla explained, “We have incorporated programmatic daily yield to give it more of a savings product feel rather than a checking account product, which is a new approach to traditional stablecoins.” The innovative design of USDL provides a way to democratize access to dollars and the risk-free rate in a secure and regulated manner.
Today, Paxos International has announced the launch of Lift Dollar ($USDL) – a stablecoin that earns yield, making US dollars and secure yield from cash and cash equivalent assets more accessible to all. Users can now seamlessly spend, save, and trade while earning yield.
Despite its potential, Paxos USDL will not be available in the United States due to regulatory restrictions. However, the stablecoin will initially focus on Argentina, with accessibility through distribution partners Ripio, Buenbit, and TiendaCrypto.
During the launch, a fee reduction policy was introduced as an additional incentive for early investors. Daya, one of the Paxos executives, stated, “For the launch, we are waiving the 30 basis points (bps) of our asset management fee, leaving only 20 beeps, resulting in users receiving more than 5%.”
Please note: The opinions and views expressed by the author or individuals mentioned in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading in cryptocurrencies involves a risk of financial loss.
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