Paxos Launches New Stablecoin Lift Dollar (USDL) with ~5% Yield

07.06.2024

Paxos has announced a new stablecoin, Lift Dollar (USDL), offering a steady yield of approximately 5% for holders. The issuance of the stablecoin is overseen by the Financial Services Regulatory Authority (FSRA) under the Abu Dhabi Global Market (ADGM). The USDL token is not available to residents of the US, the UAE (excluding ADGM), the UK, the EU, Canada, Hong Kong, Japan, and Singapore. Paxos is already well-known for its projects like PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). The first market for Lift Dollar will be Argentina, where the national currency struggles with persistent devaluation and high inflation. Local platforms Ripio, Buenbit, Manteca, and Plus Crypto will handle its distribution. "Stablecoins are meant to help people who lack access to banking services and US dollars for various reasons," said Paxos CEO Charles Cascarilla in an interview with *The Block*. He noted that Lift Dollar would target this audience worldwide. Ronak Daya, Paxos’ Head of Product, shared the company’s ambition to capture a significant portion of the stablecoin market, which he predicts will grow 20-fold. Lift Dollar is backed 1:1 by USD reserves. These reserves consist of "only the highest quality liquid assets," such as US dollar deposits, short-term US Treasury obligations, and cash equivalents. Cascarilla assured that Paxos International is solely focused on issuing stablecoins. In the hypothetical case of Paxos declaring bankruptcy, the UAE-based subsidiary would not be part of the liquidation process.