Paxos launches new stablecoin

Paxos is working on a new stablecoin. The New York-based company announced this in a press release yesterday. As the name suggests, the "Lift Dollar" (USDL) is a US dollar-denominated stablecoin. The special feature: USDL has an integrated yield feature.

Paxos generates interest through, among other things, U.S. government bonds, which the stablecoin holds as reserve funds to be passed on to investors. The USDL is regulated in Abu Dhabi. However, stablecoin is not available to the rest of the United Arab Emirates.

It is also not available to investors from the United States, Canada, the United Kingdom, Hong Kong, Japan, Singapore and the European Union. Whether and when a launch for these jurisdictions is planned is not yet known.

Paxos is best known in the crypto space as the issuer of the stablecoins Pax Dollar (USDP) and Pax Gold (PAXG). It is also responsible for issuing PYUSD, PayPal's stablecoin.

In the past, the company also worked closely with the exchange Binance and took over the issuance of BUSD, Binance's own stablecoin. In the course of the legal dispute between the SEC and the exchange, Paxos also became the target of investigations. As a result, the companies ended their cooperation.