Paxos, a renowned cryptocurrency trading platform, recently announced the launch of a new stablecoin called Lift Dollar (USDL), with the peculiarity of generating income. This innovation comes under the regulation of the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the UAE, positioning Paxos International as the official issuer.

This new stablecoin enters the market as an attractive alternative for investors, guaranteed by short-term US government bonds and insured against insolvency risks. According to Charles Cascarilla, CEO of Paxos, USDL is comparable to PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG), with a 1:1 ratio with the US dollar.

“We added programmatic daily yield to make it feel a little more like a savings product than a checking account product, which is perhaps the way to think about traditional stablecoins,” Cascarilla said. USDL’s unique structure offers a democratization of both access to dollars and the risk-free rate in a safe and regulated manner.

Despite its promise, Paxos USDL will not be available in the United States, where regulation is still a barrier. However, the stablecoin will be launched with a focus on Argentina, accessible through distribution partners Ripio, Buenbit and TiendaCrypto.

During the launch, a fee reduction policy was announced, which is an additional incentive for early investors. “For the launch, we are waiving the 30 basis points (bps) of our asset management fee. Therefore, we are only retaining 20 beeps, which means users will receive more than 5%”, explained Daya, one of the Paxos executives.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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