Stablecoin issuer Paxos has launched a yield-bearing
stablecoin in Argentina. Available through crypto platforms Ripio,
Buenbit, Manteca, and Plus Crypto, this new digital asset, dubbed Lift Dollar (USDL), aims to
maintain its value to the dollar and offer users an opportunity to earn daily
earnings from US government securities and cash equivalent assets.
Powered by Ethereum Smart Contracts
Ronak Daya, the Head of Product of Paxos
International, said: “Lift Dollar is the first stablecoin designed to benefit
token holders. Token holders and distribution partners receive daily yield through an Ethereum smart contract, with all the benefits of a regulated,
trusted stablecoin platform.”
“Our targeted launch in Argentina will ensure millions
of token holders will now have safe access to US dollars that enables them to
not only save and transact but also earn daily yield. We are pleased to work
with these trusted platforms and look forward to growing our partnerships
throughout the year.”
Today, Paxos International announced the launch of Lift Dollar ($USDL) – a yield-bearing stablecoin that democratizes access to US dollars and safe yield generated from cash and cash equivalent assets. Now, you can seamlessly spend, save and trade, all while earning yield.1/4
— Paxos (@Paxos) June 5, 2024
According to a statement by Paxos, this yield is
derived from a reserve of US government securities and cash equivalents,
managed under the supervision of the Financial Services Regulatory
Authority of Abu Dhabi Global Market. This ensures that USDL is backed 1:1 by
US dollars.
Focussing on Financial Inclusion
USDL reportedly uses an Ethereum smart contract to
distribute the daily yield directly to token holders without requiring any
additional action on their part. The launch of USDL in Argentina is part of
Paxos’ effort to enhance financial inclusion in the region through
partnerships.
Last year, Paxos secured a preliminary license from
the Abu Dhabi Global Market’s Financial Services Regulatory Authority. This
approval allows Paxos to issue USD and other currency-backed stablecoins and offer crypto-brokerage and custody services. Paxos has already made significant strides in securing
regulatory approvals, having previously received in-principle approval from
Singapore’s Monetary Authority of Singapore.
Paxos’ strategy revolves around leveraging blockchain
technology to create a more open and secure financial system. The firm’s
stablecoins are backed 1:1 by the US Dollar and cash equivalents, ensuring
transparency and stability.
This article was written by Jared Kirui at www.financemagnates.com.
