Paxos International has launched Lift dollar (USDL), a yield-generating stablecoin. The company’s first market will be Argentina. Charles Cascarilla of Paxos said USDL provides a “truly risk-free” return. Ronak Daya from Paxos stated that users can currently earn approximately 5% return from USDL.
Paxos, the issuer of BUSD, is releasing a new stablecoin!
cryptokoin.comAs you follow from , Paxos experienced difficulties due to its previous stablecoin, BUSD. The company is now issuing a different stablecoin. Paxos International, a UAE-based subsidiary of Paxos, has launched a stablecoin called Lift dollar (USDL). Paxos International made the following statement regarding the issue on Wednesday:
USDL is issued permissionlessly on Ethereum and pays returns to token holders on a scheduled basis on a daily basis, subject to reserve assets that fully support the total value of USDL in circulation.
Paxos International said USDL is backed one-to-one by the US dollar. It said it held “only the highest quality liquid assets” such as US dollar deposits, short-term US treasury bonds and cash equivalents, and that Abu Dhabi Global Market (ADGM) was regulated by the Financial Services Regulatory Authority (FSRA). Charles Cascarilla, Paxos International board member and Paxos co-founder and CEO, noted that with USDL, users can earn “truly risk-free” returns. Cascarilla stated that Paxos International is a “ring-fenced entity” that does nothing but issue stablecoins. In this context, “If something happens to Paxos, the assets are not part of a bankruptcy process. These will be returned to investors immediately.” said.
USDL will enter the market first in Argentina, it will have a return advantage
Paxos International is first launching the USDL stablecoin in Argentina. The company will do this through crypto platforms Ripio, Buenbit and TiendaCrypto as distribution partners. Paxos product manager Ronak Daya said users can currently earn about a 5% return on USDL, close to the current effective federal funds rate, or EFFR. Paxos International uses the revaluation technique to distribute the return. Additionally, Daya stated that users’ USDL holdings will increase daily with the return.
Paxos will charge a 20 basis point distribution fee and a 30 basis point issuer fee, Daya said. He also stated that he would pay the remaining income he earned to the users. Meanwhile, Daya noted that the organization will waive the issuer fee during USDL’s first promotional period.
USDL is not available in the US and some other countries
USDL is not available to residents of certain jurisdictions including the USA, UAE excluding ADGM, UK, European Union, Canada, Hong Kong, Japan and Singapore. Cascarilla said it is likely that the US SEC would view a yield-generating stablecoin as a security. For this reason, he stated that Paxos does not offer returns on existing stablecoin products such as pax dollar or USDP.
Charles Cascarilla said USDL will target such audiences globally for future launches. “Stablecoins are inherently about helping unbanked or underbanked people who don’t have access to dollars for a number of different reasons,” he said in this context. Daya said, “We predict that the stablecoin market will increase 20-fold in the next five years. “We also believe that we will capture a large part of the future growth and increase our market share,” he said.
To be instantly informed about the latest developments, contact us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!