- The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) oversees the issuance of USDL in the United Arab Emirates.
- Users of Paxos Lift Dollar can get a programmable daily rate of approximately 5%, which is in line with the yields on US Treasury bonds.
- The Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) oversees USDL (ADGM).
The Lift Dollar (USDL), a yield-generating stablecoin authorized in the United Arab Emirates (UAE), has been released by cryptocurrency trading platform Paxos, the firm announced on Wednesday.
The stablecoin is governed by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and is distributed by Paxos International, the company’s UAE division.
With the billions of dollars in interest that the biggest stablecoin issuers, like Tether and Circle, earn on the T-Bills they own, other yield-sharing stablecoins and blockchain-based U.S. Treasury products have been developed.
The new Lift Dollar, according to Paxos CEO Charles Cascarilla, is organized similarly to the previous stablecoins his company has released, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
According to him, these are backed by short-term U.S. government securities and matched 1:1 with dollars. A prudential regulator is in charge of all of this, and all assets are securely placed away from any possibility of bankruptcy.
This now resembles a savings product rather than a checking account product—which is perhaps how one might conceive of classic stablecoins—because we’ve added programmable daily dividend, Cascarilla stated in an interview.
By democratizing the risk-free rate in the safest way possible, [USDL] is taking democratization of access to dollars a step further.
Insufficient regulatory guidance is the reason why Paxos USDL will not be accessible in the United States.
According to a press statement, USDL will begin with a special emphasis on Argentina, where customers can purchase it through distribution partners Ripio, Buenbit, and TiendaCrypto.
For the launch, we are forgoing the thirty basis points (bips) of our asset management fee. Daya said in an interview that users will receive more than 5% because we’re just keeping back 20 bips.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
