Share this article
Paxos Unveils Yield-Generating Stablecoin Lift Dollar
USDL is issued in the UAE and regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
Updated Jun 5, 2024, 4:48 p.m. Published Jun 5, 2024, 4:30 p.m.
Make us preferred on Google
- Paxos Lift Dollar offers users a programmatic daily rate of around 5%, aligned with returns on U.S. Treasury bonds.
- USDL is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
Cryptocurrency trading platform Paxos has introduced a yield-generating, USD-denominated stablecoin called the , regulated in the United Arab Emirates (UAE), the company said on Wednesday.
The stablecoin is issued by Paxos International, the firm’s UAE division, and regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The largest stablecoin issuers, such as Tether and Circle, gather billions of dollars worth of interest on the T-Bills they hold, which has led to the creation of several yield-sharing stablecoins and blockchain-based U.S. Treasury products.
Paxos CEO Charles Cascarilla said the new Lift Dollar is structured the same way as the other stablecoins issued by his firm: , and . These are matched 1:1 with dollars, backed by short-term U.S. government securities, and all are overseen by a prudential regulator with all assets safely positioned remote from a potential bankruptcy situation, he said.
“We’ve added programmatic daily yield so this looks a little bit more like a savings product than a checking account product, which is maybe the way to think about traditional stablecoins,” Cascarilla said in an interview. “[USDL] is going one step further from democratizing access to dollars, to also democratizing the risk-free rate, in the safest manner possible.”
Paxos USDL will not be available in the U.S. because of a lack of regulatory guidance.
At launch, USDL will be particularly focused on Argentina, where it will be available to consumers via distribution partners Ripio, Buenbit and TiendaCrypto, according to a press release.
“For the launch, we're foregoing the 30 basis points (bips) of our asset management fee. So we’re only holding back 20 bips meaning users will get more than 5%,” Daya said in an interview.
More For You
Accelerating Convergence Between Traditional and On-Chain Finance in 2026?
Commissioned bySociete Generale-FORGE
More For You
From FTX debris to global finance: Solana’s 2026 plan is all about the application layer
Resilience built from the debris of 2022 is now shaping the Solana ecosystems future, leaders from Jupiter, Backpack, Kamino and DoubleZero argued at Consensus Hong Kong 2026.
What to know:
- A few years after the collapse of FTX nearly took it down by association, Solana’s core builders say the network’s next phase will be defined not by survival, but by scaling into global finance.
- While Solana became known during the last cycle for memecoin mania and speculative trading, the next chapter will center on bringing more traditional finance onchain, panellists argued at Consensus Hong Kong 2026.
- Upcoming upgrades aimed at reducing latency and improving confirmation times are expected to strengthen Solana’s pitch as a high-performance, general-purpose execution layer. But the panel cautioned against complacency.
Top Stories
