Paxos, a well-known platform for cryptocurrency trading, has recently introduced a novel stablecoin named Lift Dollar (USDL) that offers a unique feature of generating income. This groundbreaking development falls under the oversight of the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the United Arab Emirates, establishing Paxos International as the official issuer.
The introduction of this new stablecoin presents an appealing option for investors, backed by short-term US government bonds and safeguarded against risks of insolvency. According to Charles Cascarilla, the CEO of Paxos, USDL is on par with PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), maintaining a 1:1 ratio with the US dollar.
Cascarilla noted, “We have included a programmatic daily yield feature to provide a sense of a savings product rather than a checking account product, a departure from traditional stablecoins.” The distinctive design of USDL offers a democratization of access to dollars and the risk-free rate in a secure and regulated manner.
Today, Paxos International unveiled Lift Dollar ($USDL) – a stablecoin yielding returns that opens up access to US dollars and secure returns from cash and cash equivalents. Users can now seamlessly engage in spending, saving, and trading while earning a yield.
Despite its potential, Paxos USDL will not be accessible in the United States due to regulatory challenges. However, the stablecoin’s launch will focus on Argentina, with accessibility through distribution partners Ripio, Buenbit, and TiendaCrypto.
During the launch, a policy of reducing fees was introduced, serving as an additional incentive for early investors. Daya, a Paxos executive, clarified, “For the launch, we are waiving 30 basis points (bps) of our asset management fee. As a result, we are only keeping 20 beeps, ensuring users receive over 5%.”
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The opinions and views expressed by the author or individuals mentioned in this article are purely for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading in cryptocurrencies carries a risk of financial loss.
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