Author: Derek Andersen, CoinTelegraph; Translated by: Wuzhu, Golden Finance
Paxos International is issuing an interest-bearing stablecoin called Lift Dollar (USDL). USDL will be regulated at the Abu Dhabi Global Market (ADGM) and pay overnight returns based on the interest Paxos International earns on the reserves backing it.
USDL will be backed 1:1 by liquid U.S. government securities and cash equivalent reserve assets held in accordance with the requirements of the ADGM Financial Services Regulatory Authority. Paxos International will not earn interest on these reserves, but will charge an issuer fee on the tokens.
Paxos separately announced that USDL will be available in Argentina through distributors Ripio, Buenbit, Manteca, and Plus Crypto.
Paxos claims USDL is the first of its kind
Ethereum smart contracts will use a mechanism called "rebasing" to automatically distribute USDL's earnings based on market conditions. According to Bloomberg, the yield will be around 5%. Paxos International said in a statement that USDL is the first interest-bearing, regulated stablecoin. Generally speaking, stablecoin holders can also earn interest through staking, re-staking, and yield farming.
Source: Paxos
USDL is not available to residents of the United States, United Arab Emirates outside of ADGM, the United Kingdom, the European Union, Canada, Hong Kong, Japan, or Singapore. Paxos International explained:
“The digital assets referred to herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States except pursuant to an applicable exemption from registration.”
New York-based Paxos is regulated by the New York Department of Financial Services (NYDFS) and issues PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG). The company also issued Binance USD (BUSD) until NYDFS and the SEC threatened to take action against it for issuing unregistered securities.
