Paxos International has announced the launch of Lift dollar, which it says is the first stablecoin to offer holders daily yield in wallet under regulatory oversight.
“Issued by Paxos International, a regulated entity under the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), $USDL will be available to consumers in eligible global markets,” the firm said in the announcement.
According to Paxos, $USDL is unmatched in the market as holders earn overnight yield from short-term, high quality liquid – U.S. government securities and cash equivalent reserve assets held under the safe protection and custody requirements of the FSRA.
“Using an Ethereum smart contract, $USDL distributes the yield generated from its reserves to eligible wallet addresses daily without requiring any additional steps by the token holder. This results in a seamless experience for token holders as their USDL wallet holdings increase every day,” said Paxos.
Paxos will retain an issuer fee and pay out the remaining yield earned based on prevailing daily market conditions. The firm will partner with global exchanges, wallets, and platforms to distribute $USDL to individuals and institutions.
Paxos is behind several stablecoin projects including:
- PayPal USD Pax Dollar (USDP) and
- Pax Gold (PAXG)
under the regulation of the New York Department of Financial Services (NYDFS).
- The company also issued Binance USD (BUSD) until the NYDFS and the United States Securities and Exchange Commission took action against it for issuing an unregistered security.
$USDL will not be available to residents of:
- The United States
- The United Arab Emirates outside the ADGM which is a free economic zone within Abu Dhabi
- The United Kingdom
- The European Union
- Canada
- Hong Kong
- Japan, or
- Singapore
The digital asset ecosystem has evolved to create mechanisms for token holders to earn yield on stablecoins, but these options are high-risk, opaque and have led to the failure of numerous firms.
“$USDL is a first-of-its-kind – a regulated product, earning and paying safe yield on a daily basis,” said Charles Cascarilla, a board member of Paxos International.
“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.”
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