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Paxos offers a stablecoin with the ability to make profits. This currency is issued under the name USDL in the United Arab Emirates. It will also be supervised by the Financial Services Regulatory Authority (FSRA) and the Abu Dhabi Global Market (ADGM).
Paxos’ Lift Dollar currency offers users a scheduled daily rate of around 5%, in line with the US Treasury bond yield.
USDL is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
Cryptocurrency trading platform Paxos has introduced a dollar-denominated yield stablecoin called Lift Dollar (USDL), which will be regulated in the United Arab Emirates (UAE), the company announced on Wednesday.
Stablecoin is issued by Paxos International, the UAE division of the company, and is regulated by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
The largest stablecoin issuers, such as Tether and Circle, collect billions of dollars in interest on the notes they hold, which has led to the creation of several yield-sharing stablecoins and blockchain-based US Treasury products.
Paxos CEO Charles Cascarilla said the new Lift Dollar is similar to other stablecoins issued by his company. Stablecoins such as PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG). He said these are pegged 1:1 to the dollar, backed by short-term US government securities, and all overseen by a prudent regulator. Currently, all assets are safely out of bankruptcy.
“We’ve added scheduled daily returns,” Cascarilla said in an interview. “So this product looks a little more like a savings product than a checking account product, which is maybe a way to think about traditional stablecoins.” “[The USDL] is one step closer to democratizing access to the dollar, as well as democratizing the risk-free rate, in the safest way possible.”
USDL will not be available in the US due to lack of regulatory guidance. According to the press release, USDL will be specifically focused on Argentina at launch, where it will be available to consumers through distribution partners Ripio, BuenBit and TindaCrypto.
“To launch, we’re waiving 30 basis points (bips) of our asset management fee. So we only stop at 20 bips which means users will get more than 5%.” Daya said in an interview.
