Paxos, a notable figure in the stablecoin sector, has introduced a fresh stablecoin called Lift Dollar (USDL) via its subsidiary Paxos International, based in the UAE.
Abu Dhabi Authority Secures and Regulates Paxos USDL Stablecoin
With a daily dividend that is programmed to be around 5%, the US dollar-denominated Paxos USDL stablecoin tracks the performance of US Treasury bonds.
The Financial Services Regulatory Authority of Abu Dhabi, which oversees the USDL, announced its regulation on Wednesday. The structure of USDL is similar to that of Paxos’s other stablecoins, PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), as stressed by Paxos CEO Charles Cascarilla. All of these stablecoins are backed by short-term U.S. government securities and are valued exactly one to one against the dollar, protecting investments against possible bankruptcies.
Argentina’s First USDL Launch via Crypto Platforms
First, USDL is being introduced in Argentina by Paxos International in collaboration with the cryptocurrency platforms Ripio, Buenbit, and TiendaCrypto. This tactical entry point takes advantage of the large user bases on these platforms to promote adoption.
The action follows last year’s regulatory orders for Paxos Trust Company, which is governed by the New York Department of Financial Services, to stop providing BUSD, a stablecoin associated with Binance.
June 2024, Cryptoniteuae
