#Paxos Unveils Yield-Generating #stablecoin Lift Dollar
Paxos has launched a yield-generating, USD-denominated stablecoin called the Lift Dollar (USDL), offering users a programmatic daily rate of around 5%, which aligns with returns on U.S. Treasury bonds. The USDL is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
Issued by Paxos International, the UAE division of the #cryptocurrency trading platform Paxos, USDL aims to provide a stable and secure investment option. The stablecoin is backed 1:1 with dollars and supported by short-term U.S. government securities, ensuring all assets are safely positioned away from any potential bankruptcy situations. This structure is similar to other stablecoins issued by Paxos, such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
Paxos CEO Charles Cascarilla highlighted that the Lift Dollar is designed to be more like a savings product than a traditional checking account product, democratizing access to the risk-free rate in a secure manner. “We’ve added programmatic daily yield so this looks a little bit more like a savings product than a checking account product, which is maybe the way to think about traditional stablecoins,” Cascarilla said. “[USDL] is going one step further from democratizing access to dollars, to also democratizing the risk-free rate, in the safest manner possible.”
Although USDL will not be available in the U.S. due to regulatory constraints, it will be accessible to users in other regions, including Europe, the UK, and Japan. The launch will particularly target Argentina, where it will be distributed through partners such as Ripio, Buenbit, and TiendaCrypto.
“For the launch, we're foregoing the 30 basis points (bips) of our asset management fee. So we’re only holding back 20 bips, meaning users will get more than 5%,” said Daya in an interview.
Source - coindesk.com
