Paxos issues interest-bearing stablecoin USDL, with interest income automatically distributed to wallets daily.

Paxos International has launched a yield-bearing stablecoin called Lift Dollar (USDL), which utilizes Ethereum smart contracts to distribute the interest generated from its reserves to eligible wallet addresses on a daily basis, currently yielding approximately 5%.

USDL Earnings Automatically Distributed to Wallets

Paxos International, a subsidiary of Paxos based in the UAE, has announced the launch of a yield-bearing stablecoin called Lift Dollar USDL. USDL is issued by Paxos International, a regulated entity under the supervision of the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), and will be available to eligible consumers in global markets. Paxos International will work with global exchanges, wallets, and platforms to distribute USDL to individuals and institutions.

Holders can earn overnight yields from the reserve assets held, such as short-term, high-quality liquid assets like US government securities and cash equivalents, in compliance with FSRA security protection and custody requirements. This reserve structure is similar to other USD stablecoins issued by Paxos, backed by a 1:1 value ratio. USDL is issued on the Ethereum blockchain and utilizes Ethereum smart contracts to distribute the earnings generated by its reserve daily to qualifying wallet addresses, with token holders requiring no additional steps to be taken.

USDL is not available to residents of certain jurisdictions, including the United States, Abu Dhabi International Financial Centre, the UK, EU, Canada, Hong Kong, Japan, and Singapore.

Paxos Focuses on Stablecoin Issuance

Paxos is a blockchain infrastructure platform focused on issuing stablecoins, with its digital assets including:

• PayPal USD (PYUSD): Issued specifically for payment giant PayPal, currently valued at nearly $400 million
• Pax Dollar (USDP): Currently valued at $145 million
• Pax Gold (PAXG): Tokenized gold, each PAXG backed by one troy ounce of gold, currently valued at approximately $430 million

Paxos' USD stablecoins are backed by USD deposits, short-term US government securities, and cash equivalents, with monthly attestation reports issued by independent third-party accounting firms.

However, in terms of issuance volume, stablecoins currently have a total market capitalization of up to $162 billion, with Paxos' largest issuance, PAXG, only ranking tenth, while PYUSD ranks twelfth.

Will Paxos breaking the tradition by issuing yield-bearing stablecoins bring them more market share and visibility?