Paxos launches yield-bearing stablecoin Lift Dollar (USDL)

Paxos International, a UAE-based affiliate of stablecoin issuer Paxos, has unveiled a new yield-bearing stablecoin dubbed Lift dollar (USDL).

USDL will be the first stablecoin to offer eligible users across the globe the chance to bid for daily yield, with this available in wallets under regulatory oversight, the company announced on June 5.

USDL is an innovative yield-bearing token

One of the key benefits of USDL to token holders is its democratization of overnight yield. 

In this case, the central issuer will send any interest earned on the stablecoin’s reserve directly to eligible end holders. Holders can spend, trade or save USDL, all the while they earn a yield on their tokens.

“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,” Charles Cascarilla, Paxos co-founder and member, board of directors at Paxos International, said in a statement.

Paxos International, regulated by Abu Dhabi Global Market (ADGM)’s Financial Services Regulatory Authority (FSRA), will distribute USDL to qualified individuals and institutions in partnership with leading exchanges and wallets among other platforms.

The distribution will tap into Ethereum smart contracts, with eligible wallet addresses receiving yield generated from USDL reserves. The payout will be daily and will not require any extra steps from token holders.

“Lift Dollar is the first stablecoin designed to benefit both end users and distributors in a safe manner. Through Paxos International, eligible users around the world can access USDL directly through secure channels managed by trusted partners and watch their holdings grow daily in their wallets,” Ronak Daya, head of product at Paxos, added.

According to details in the press release, USDL will have a reserve structure similar to other US dollar backed stablecoin that Paxos issues. The 1:1 USD-pegged asset’s reserves will only be in “high-quality liquid assets” such as US dollar deposits, short duration US treasuries and cash equivalents.

USDL not available to US, UK residents

Paxos, which issues PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG), announced that USDL is not available to residents in several countries and juridictions.

Specifically, the stablecoin will not be available in the United States, the European Union, the United Kingdom and the UAE. Paxos International will not offer USDL in Canada, Japan, Hong Kong, and Singapore among other jurisdictions, the firm noted.

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