According to breaking information, cryptocurrency trading platform Paxos announced today that it introduced a USD-denominated stablecoin called Lift Dollar (USDL), which is issued and yields in the United Arab Emirates (UAE).
Cryptocurrency trading platform Paxos announced the launch of Lift Dollar (USDL), a new yield-generating USD-denominated stablecoin. The stablecoin is issued in the United Arab Emirates (UAE) and was introduced today.
Lift Dollar is issued by Paxos International, the firm's UAE division, and is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). The move comes as major stablecoin issuers such as Tether and Circle accumulate billions of dollars worth of interest on the US-dated bonds they hold.
Paxos CEO Charles Cascarilla explained that Lift Dollar is structured similarly to other stablecoins issued by the firm, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). These stablecoins are matched 1:1 to the dollar, backed by short-term US government securities, and all are overseen by a prudential regulator. All assets are safely positioned away from potential bankruptcy situations.
“We added programmatic daily returns so it looks a little more like a savings product than a checking account product, which is perhaps the way to think about it for traditional stablecoins,” Cascarilla said. said.
Due to lack of regulatory guidance, Paxos USDL will not be available in the US. However, it will be accessible to individuals who want to hold dollars in many other regions, including Europe, the United Kingdom, and Japan.
*This is not investment advice.
