Paxos launched the Lyft Dollar
Share this article
Paxos, through its UAE-based entity Paxos International, has introduced a new stablecoin called Lyft Dollar (USDL). The USDL is designed to generate a yield for its holders of approximately 5% on a programmed daily basis, which is in line with the yield on US Treasury bonds.
The stablecoin is regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) and is structured similarly to other stablecoins issued by Paxos such as PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (Pax Gold). PaxG).
These stablecoins are pegged 1:1 to the US dollar, backed by short-term US government securities and controlled by a prudent regulator, with assets far from bankruptcy.
According to Paxos, the product “uses a technical method called rebasing to seamlessly distribute product to users' wallets.”
Paxos CEO Charles Cascarla said USDL not only democratizes access to the dollar, but also democratizes risk-free rates in the safest possible way. Stable Coin is specifically focused on Argentina, where it is available to users through distribution partners Ripio, Buenbit and TiendaCrypto.
“Using an Ethereum smart contract, USDL distributes the output from the reserve to eligible wallet addresses on a daily basis,” the company said in a press release.
However, USDL is not available in the US due to a lack of regulatory guidance, as a stable coin that produces a yield can be viewed as a security by the US Securities and Exchange Commission.
Notably, Stable Coin is also not available to residents of certain other jurisdictions, including the UAE (except ADGM), the UK, the European Union, Canada, Hong Kong, Japan and Singapore.
Paxos International is targeting a global audience that is unbanked or underbanked and has no access to dollars. The company believes that the stablecoin market will grow significantly over the next five years and aims to capture a large portion of this growth by gaining market share from existing competitors.
Share this article
The information on or included in this website is obtained from independent sources that we believe to be accurate and reliable, but we make no representations or warranties as to the timeliness, completeness or accuracy of any information on or accessible from this website. . Decentralized Media, Inc. Not an investment advisor. We do not provide personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may be out of date, or may be incomplete or incorrect. We may, but are not obligated to, update any outdated, incomplete or inaccurate information.
Crypto Briefing may also include articles with AI-generated content created by Crypto Briefing's own proprietary AI platform. We use AI as a tool to deliver fast, useful and actionable information without losing the insight – and control – of experienced crypto natives. All AI-added content is carefully reviewed, for accuracy, by our editors and writers, and we always draw from multiple primary and secondary sources to create our stories and articles.
You should not make an investment decision in an ICO, IEO or other investment based on the information on this website and you should never interpret or rely on any information on this website as investment advice. If you are seeking investment advice on an ICO, IEO or other investment, we strongly recommend that you consult a licensed investment advisor or other qualified financial professional. We do not receive compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities or commodities.
See full terms and conditions.
