Paxos, a well-known platform for trading cryptocurrencies, has recently unveiled a groundbreaking stablecoin named Lift Dollar (USDL) that offers the unique feature of generating income. This exciting 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 the stablecoin.
The introduction of this new stablecoin presents a compelling option for investors, backed by short-term US government bonds and safeguarded against risks of insolvency. Charles Cascarilla, the CEO of Paxos, 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.
“We have incorporated a programmatic daily yield feature to give it the feel of a savings product rather than a traditional checking account product, which is a unique aspect of USDL,” Cascarilla explained. This innovative structure of USDL allows for a democratization of access to dollars and the risk-free rate in a secure and regulated manner.
Today, Paxos International has unveiled Lift Dollar ($USDL) – a stablecoin that generates yield, providing equal access to US dollars and secure yield from cash and cash equivalent assets. Users can now effortlessly spend, save, and trade while earning a yield on their holdings.
Despite its potential, Paxos USDL will not be accessible in the United States due to regulatory constraints. However, the stablecoin will be initially introduced in Argentina through distribution partners Ripio, Buenbit, and TiendaCrypto.
During the launch, a fee waiver policy was announced as an additional incentive for early adopters. “To kick off the launch, we are eliminating the 30 basis points (bps) of our asset management fee, leaving only 20 bps, resulting in users receiving over 5%,” shared Daya, a Paxos executive.
Disclaimer: The opinions and views expressed by the author or individuals mentioned in this article are for informational purposes only and should not be considered as financial or investment advice. Investing or trading in cryptocurrencies carries a risk of financial loss.
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