Game-changing move from Paxos for the stablecoin market.

Paxos announced in a statement that they have issued a new stablecoin called Lift Dollar (USDL) held in the United Arab Emirates (UAE).

The stablecoin, which will have a yield feature, will be issued by the company's UAE-based subsidiary, Paxos International. The crypto asset is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).

Tether and Circle, the largest companies in the stablecoin market, have begun to generate significant income from the treasury bills they hold as collateral in recent years. This approach paved the way for the development of yield-sharing stablecoins.

Stating that Lift Dollar (USDL) is structured in the same way as Paxos' other stablecoins, Charles Cascarilla, the company's CEO, assured that its assets are pegged to the dollar at a one-to-one ratio and are supported by short-term treasury papers. Cascarilla also stated that the assets are regularly inspected to avoid the risk of possible bankruptcy.

Cascarilla also said that with USDL, they went one step further in making the dollar accessible to everyone and democratized the possibility of risk-free returns. However, Paxos' new asset USDL will not be able to be traded in the USA due to lack of regulation.

In the press release regarding the #USDL launch, the company stated that they will focus specifically on Argentina and that they are cooperating with 3 intermediary companies, Ripio, Buenbit and TiendaCrypto, in the distribution of the crypto asset.
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