The international arm of New York-based Paxos will issue a U.S. dollar-pegged stablecoin that will not be available in the United States.
Paxos International is issuing an interest-bearing stablecoin called the Lift Dollar (USDL). The USDL will be regulated in the Abu Dhabi Global Market (ADGM) and pay overnight yield on the interest Paxos International earns on the reserves backing it.
The USDL will be backed 1:1 by liquid U.S. government securities and cash equivalent reserve assets held in accordance with the requirements of the ADGM’s Financial Services Regulatory Authority. Rather than earning interest on those reserves, Paxos International will charge an issuer fee for the token.
Paxos announced separately that the USDL will be available in Argentina through distributors Ripio, Buenbit, Manteca and Plus Crypto.