Yield-Bearing Stablecoin Lift Dollar (USDL) Launches on Arbitrum
Paxos International Announces the Launch of Lift Dollar (USDL) onto Arbitrum, Unlocking Safe Yield and Cost-Effective, Fast Transactions for a Robust Gaming, Social and DeFi Ecosystem
ABU DHABI, UAE , Oct. 9, 2024 /PRNewswire/ — Paxos International, a UAE-based affiliate of Paxos, today announced Lift Dollar (USDL) – a yield-bearing stablecoin issued by a regulated entity – is now available on Arbitrum. The expansion of USDL onto Arbitrum unlocks cost-effective, fast transactions within a robust gaming, social and DeFi ecosystem.
Lift Dollar (USDL) is a US dollar-backed stablecoin with regulatory oversight that distributes yield from its cash and cash equivalent reserves to its holders every day. This launch represents a significant moment in the future of DeFi, as it allows users and developers within the Arbitrum network to unlock the benefits of a stablecoin that natively distributes yield.
Ronak Daya, Head of Product at Paxos, commented, “USDL combines the stability of US dollars with blockchain efficiency, democratizing access to safe yield. By expanding to Arbitrum, we’re offering Ethereum-level security with faster, cheaper transactions. We’re excited to unlock new possibilities for the Arbitrum community with Lift Dollar.”
A.J. Warner, Chief Strategy Officer at Offchain Labs, stated, “Adding a regulated, yield-bearing stablecoin to the Arbitrum network will allow ecosystem innovators to build the next generation of applications and use cases. Stablecoins continue to grow as an asset class that Arbitrum’s DeFi-native environment relies upon heavily, and USDL is the latest to join that grouping on the network. We’re excited to see how this addition continues to drive a new standard of DeFi on the network.”
USDL gives eligible users direct access to both US dollars and yield from cash equivalent assets from outside the US. 1 USDL is always worth 1 US dollar. User balances of USDL increase every day in their wallet to reflect the daily yield distribution. The yield from USDL is only from US Treasuries and other cash equivalent assets. These short-term, highly liquid reserve’s assets are held in segregated accounts under the safe protection, custody requirements and prudential oversight by the Financial Services Regulatory Authority of the ADGM.
Lift Dollar. The future is looking up.
USDL is a Fiat-Reference Token issued by Paxos International which is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). With USDL Paxos encourages broad stablecoin adoption & industry Expansion with a new model where holders directly benefit from yield earned on Reserve. The FSRA is recognized for its robust regulatory framework and commitment to fostering innovation in financial services. Under its FSRA’s license, Paxos International is required to hold only high-quality liquid assets to back USDL – US dollar deposits, short duration US treasuries and cash equivalents. Paxos International is required to maintain a 1:1 parity between USDL and the US dollar, and eligible and onboarded customers can redeem their USDL for fiat with Paxos International at all times.
NOTE: This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (including its territories and possessions, any state of the US and the District of Columbia). This announcement is not an offer of securities for sale in the US. The digital assets referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended and may not be offered or sold in the US, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the US. USDL is not available to residents of certain jurisdictions, including the United States, and the United Arab Emirates except ADGM, the United Kingdom, the European Union, Canada, Hong Kong, Japan or Singapore.
About Paxos
Paxos is the leading regulated blockchain infrastructure and tokenization platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.
Paxos partners with leading global enterprises to tokenize, custody, trade and settle assets. Its blockchain solutions are used by leaders like PayPal, Interactive Brokers, Mastercard, Mercado Libre and Nubank. It is the issuer of numerous regulated digital assets including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG). Its affiliate company Paxos International issues the yield-bearing regulated stablecoin Lift Dollar (USDL). Prudentially regulated by the NYDFS in the US, the MAS in Singapore and FSRA in the Abu Dhabi Global Market, Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.
Contact: press@paxos.com
SOURCE Arbitrum Foundation; Paxos
