Paxos International presents Lift Dollar (USDL)

Paxos encourages broad stablecoin adoption and industry expansion with a new model in which holders directly benefit from the yield earned on reserves

Launch follows Paxos' track record of stablecoin innovation for financial industry leaders

NEW YORK And ABU DHABIUnited Arab Emirates, June 6, 2024 /PRNewswire/ — Paxos International, a subsidiary of Paxos based in the United Arab Emirates, today announced the launch of a yield-bearing Lift Dollar (USDL) stablecoin. Issued by Paxos International, an entity regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), USDL will be available to consumers in eligible global markets. Paxos International will partner with global exchanges, wallets and platforms to distribute USDL to individuals and institutions.

USDL is unrivaled in the market because its holders earn a daily yield through high-quality, short-term, liquid U.S. government securities and cash equivalent reserve assets held under the protection and conservation requirements of the FSRA. This reserve structure is like other US dollar stablecoins issued by Paxos and whose value is guaranteed by 1:1. USDL is issued permissionlessly on Ethereum and pays a return programmatically to token holders daily, provided that the reserve assets fully support the total value of USDL in circulation. USDL marks an important innovation in the democratization of day-to-day yield by transferring interest earned on stablecoin reserves directly to eligible end-holders of the central issuer. This follows Paxos’ proven track record in creating blockchain solutions for financial institutions and industry leaders.

Using an Ethereum smart contract, USDL distributes the yield generated by its reserves to eligible wallet addresses daily without requiring additional steps from the token holder. This results in a seamless experience for token holders as their USDL wallet holdings grow every day. Paxos will retain an issuer fee and pay the remaining yield earned based on prevailing daily market conditions. Businesses located in authorized jurisdictions and wishing to enable USDL on their platforms can register with Paxos International.

Charles Cascarilla, member of the board of directors of Paxos Internationalsaid: “Paxos is committed to revolutionizing global financial markets through trusted, trusted and regulated blockchain offerings. The digital asset ecosystem has evolved to create mechanisms for token holders to earn yield on stablecoins, but these options are high risk, opaque, and have led to the bankruptcy of many companies. USDL is a one-of-a-kind regulated product, earning and paying a safe yield daily, only centralized issuers have benefited from the economics of Paxos International's stablecoin reserves. has reinvented this dynamic so that all token holders can securely use and grow their regulated stablecoin holdings. Our vision is that a more democratic, inclusive and accessible financial market is a crucial step towards achieving this goal.

FSRA is recognized for its strong regulatory framework and commitment to fostering innovation in financial services. Under the FSRA license, Paxos International is required to hold only high-quality liquid assets to back USDL (US dollar deposits, short-duration US Treasury bills and cash equivalents). It is necessary to ensure that USDL will maintain a 1:1 parity with the US dollar and that consumers will be able to exchange their tokens for fiat at any time.

Roanak Dayproduct manager at Paxossaid: “Lift Dollar is the first stablecoin designed to benefit both end users and distributors in a secure manner. Through Paxos International, eligible users around the world can directly access USDL through secure channels managed by trusted partners and watch their holdings grow daily. their wallets. Paxos International operates a technical mechanism called rebasing to transparently distribute yield to user portfolios. We’re excited about the opportunities this will create for businesses and individuals this year.

Paxos has a strong track record in building blockchain technologies to power offerings for financial industry leaders. Its digital assets include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG) regulated by the New York Department of Financial Services, each providing partners and users with supervised 1:1 quality asset parity by the highest level. levels of regulatory oversight. The company is the trusted partner of businesses around the world for asset tokenization, custody, trading and settlement.

Arvind RamamurthyHead of Market Development at ADGMsaid: “ADGM congratulates Paxos International on receiving approval to issue its high-yielding stablecoin, Lift Dollar (USDL) in select global markets. This achievement highlights the growth and innovation of the industry in the UAE and the wider region, made possible through progressive and credible regulatory oversight from the FSRA. We anticipate the continued growth of USDL and look forward to the innovative products that Paxos International will introduce to this dynamic and ever-evolving digital asset market.

NOTE: This announcement is not intended for publication or distribution, directly or indirectly, in or The United States of America (including its territories and possessions, any state of the United States and District of Colombia). This announcement does not constitute an offer to sell any securities in the United States. The digital assets mentioned 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 United States except pursuant to a applicable registration exemption. No public offering of securities is being made in the United States. USDL is not available to residents of certain jurisdictions, including United Statesand the United Arab Emirates except ADGM, the United Kingdomthe European Union, Canada, Hong Kong, Japan Or Singapore.

Contact: [email protected]

SOURCEPaxos