Author: Derek Andersen, CoinTelegraph; Compiler: Wuzhu, Golden Finance
Paxos International is issuing an interest-bearing stablecoin called Lift Dollar (USDL). USDL will be regulated at the Abu Dhabi Global Market (ADGM) and pay overnight returns based on the interest Paxos International earns from the reserves that back it.
USDL will be backed 1:1 by liquid U.S. government securities and cash-equivalent reserve assets, which are held in accordance with the requirements of the ADGM Financial Services Regulatory Authority. Paxos International will not earn interest on these reserves, but will charge issuer fees for the tokens.
Paxos separately announced that USDL will be available in Argentina through distributors Ripio, Buenbit, Manteca and Plus Crypto.
Ethereum smart contracts will use a mechanism called "rebasing" to automatically distribute USDL's earnings based on market conditions. According to Bloomberg, the yield will be around 5%. Paxos International said in a statement that USDL is the first interest-bearing, regulated stablecoin. Generally speaking, stablecoin holders can also earn interest through staking, re-staking and yield farming.
Source: Paxos
USDL is not available to residents of the U.S., United Arab Emirates outside ADGM, the U.K., the EU, Canada, Hong Kong, Japan, or Singapore. Paxos International explains:
“The digital assets referred to herein have not been registered under the U.S. Securities Act of 1933, as amended, and will not be registered under that act and may not be offered or sold in the United States except pursuant to an applicable exemption from registration.”
New York-based Paxos is regulated by the New York Department of Financial Services (NYDFS) and issues PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG). The company also issued Binance USD (BUSD) until NYDFS and the SEC threatened action against it for issuing unregistered securities.
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