Paxos Launches Interest-Bearing Stablecoin Lift Dollar (USDL)

Paxos International has introduced Lift Dollar (USDL), an interest-bearing stablecoin, initially launched in the Argentine market. The developers have announced that USDL is a "risk-free" stablecoin with a return rate of up to 5% for holders.

Paxos Launches Interest-Bearing Stablecoin Lift Dollar (USDL)

Paxos International, a leading provider and issuer of stablecoins with products like USDP, BUSD, and PAXG, has released its first yield-bearing stablecoin, Lift Dollar (USDL), set to launch in Argentina.

USDL will be issued on Ethereum and pegged 1:1 to the US dollar. USDL provides daily interest to token holders from government securities or short-term US Treasury bonds and other cash-equivalent assets.

Holders can expect to earn approximately 5% returns from USDL, a rate equivalent to the current Federal Funds Rate (EFFR). Paxos International uses restructuring techniques to distribute profits, resulting in an increasing USDL balance for holders as they receive interest daily.

Charles Cascarilla, Founder and CEO of Paxos, stated that users could earn returns without any risk when holding USDL. He emphasized, "If anything happens to Paxos, the held assets will not be affected by bankruptcy proceedings. They will be immediately returned to investors."

Paxos International will launch USDL in Argentina through crypto platforms like Ripio, Buenbit, and TiendaCrypto as distribution partners. However, USDL will not be available in certain jurisdictions, including the USA, UK, European Union, Canada, Hong Kong, Japan, and Singapore.

CEO Cascarilla explained that an interest-bearing stablecoin might be considered a security by the SEC, which is why Paxos does not offer interest on existing stablecoin products like Pax Dollar or USDP in the USA.

Cascarilla mentioned that USDL aims to support unbanked individuals or those unable to access USD for various reasons.

Ronak Daya, Head of Product at Paxos, commented, "We believe the stablecoin market will grow 20 times over the next five years, and Paxos will capture a significant portion of future growth."

Key Highlights:

• Interest-Bearing Stablecoin: USDL offers up to 5% interest for holders.
• Deployment: Issued on Ethereum, pegged 1:1 to USD, and available initially in Argentina.
• Daily Interest: Derived from short-term US Treasury bonds and cash-equivalent assets.
• Risk-Free Assurance: Assets held by Paxos are protected from bankruptcy effects.
• Target Market: Aims to support the unbanked and those with limited USD access.
• Limited Availability: Not available in the USA, UK, EU, Canada, Hong Kong, Japan, and Singapore.

This new stablecoin by Paxos signifies a significant innovation in the crypto finance space, offering secure and profitable opportunities for users, especially in regions with limited access to traditional banking services.