Paxos International Launches USDL Stablecoin with Yield Benefits

Paxos International, a subsidiary of Paxos operating in the UAE, has launched a new stablecoin named Lift Dollar (USDL) that allows holders to earn yield from reserves. This innovative stablecoin is overseen by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and will be available to users in select global markets through partnerships with various exchanges and platforms.

Unlike traditional stablecoins, USDL enables holders to earn overnight yield from a pool of high-quality liquid US government securities and cash equivalent reserve assets. Each USDL token is fully backed by these reserve assets at a 1:1 ratio, ensuring its stability and consistent value. Operating on the Ethereum blockchain, USDL distributes yield daily to token holders based on the total USDL in circulation.

A standout feature of USDL is its unique mechanism that transfers interest earned on reserve holdings directly to token holders, making the process more inclusive and secure. Through an Ethereum smart contract, USDL automatically disperses yield to eligible wallet addresses on a daily basis, offering a user-friendly experience.

Paxos International, renowned for its blockchain solutions in the financial sector, aims to transform the financial landscape by providing regulated and reliable blockchain products. USDL, a regulated stablecoin, offers a safe avenue for users to earn yield while maintaining a 1:1 peg to the US dollar.

Utilizing a technical concept known as rebasing, USDL ensures that both end users and distributors benefit from the stablecoin in a secure manner. Paxos International's dedication to regulatory adherence and innovation positions USDL as a significant advancement towards a more inclusive and accessible financial market.

With the backing of the FSRA and ADGM, Paxos International plans to expand the availability of USDL to global markets, granting users access to a stablecoin that combines safety, yield, and regulatory supervision. The introduction of USDL signifies a major milestone in the progression of digital assets and financial services in the UAE and beyond.