Paxos International Launches Yield-Bearing Stablecoin on Arbitrum
2024-10-09

Paxos International, a UAE-based affiliate of Paxos, announced that the yield-bearing stablecoin issued by a regulated entity – Lift Dollar (USDL) – is now available on the popular Layer 2 chain Arbitrum.
According to the press release shared with Cryptonews, the USDL expansion onto the Ethereum scaling solution Arbitrum unlocks “safe yield and cost-effective, fast transactions for a robust gaming, social, and DeFi ecosystem.”
This launch represents a significant moment in the future of DeFi, as it allows users and developers within the Arbitrum network to unlock the benefits of a stablecoin that natively distributes yield.
Ronak Daya, Head of Product at Paxos, said that “by expanding to Arbitrum, we’re offering Ethereum-level security with faster, cheaper transactions.”
A.J. Warner, Chief Strategy Officer at Offchain Labs, the team behind Arbitrum, commented that USDL is the latest to join the stablecoins available on the network.
Also, this asset class continues to grow, and Arbitrum’s DeFi-native environment relies upon it “heavily.”
Warner said that adding a regulated, yield-bearing stablecoin to Arbitrum allows “ecosystem innovators to build the next generation of applications and use cases” and drives “a new standard of DeFi on the network.”
Notably, this stablecoin is not available to residents of several large jurisdictions.
These include the United States, the United Kingdom, the European Union, Canada, Hong Kong, Japan, Singapore, and the United Arab Emirates, except the Abu Dhabi Global Market (ADGM).
Today, Paxos International announced the launch of Lift Dollar ($USDL) – a yield-bearing stablecoin that democratizes access to US dollars and safe yield generated from cash and cash equivalent assets. Now, you can seamlessly spend, save and trade, all while earning yield.1/4— Paxos (@Paxos) You might also likeUbisoft and Arbitrum Collaborate on Web3 Game Captain Laserhawk: the G.A.M.E.Encouraging Broad Stablecoin Adoption
Paxos International is a regulated entity under the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).
Under this license, Paxos International must maintain a 1:1 parity between USDL and USD.
It must hold high-quality liquid assets to back USDL–USD deposits, short-duration US treasuries, and cash equivalents. Customer can redeem their USDL for fiat at all times, it said.
In the latest edition of our Stablecoin Policy 101 series, the policy team at Paxos thoughtfully gives an overview of state vs. federal regulation of stablecoin issuers.💡Read the post from our experts (so you can become one too). ⬇️ — Paxos (@Paxos) 
The Paxos affiliate company in June 2024. It said it would partner with global exchanges, wallets, and platforms to distribute the coin to individuals and institutions.
Paxos’ Daya commented that the stablecoin “combines the stability of US dollars with blockchain efficiency, democratizing access to safe yield.”
Additionally, holders directly benefit from yield earned on Reserve. USDL distributes yield from its cash and cash equivalent reserves to its holders daily.
This approach encourages broad stablecoin adoption and industry expansion, the announcement said.
Meanwhile, Paxos is the issuer of several regulated digital assets. These include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
PYUSD, the new stablecoin from PayPal, is now on MoonPay!💰 PYUSD on Ethereum (today) and Solana (soon)🎉 On the only on-ramp that lets you buy crypto using your PayPal account🌎 Available in 150+ countriesWelcome to MoonPay! — MoonPay 🟣 (@moonpay) 
It is regulated by the New York Department of Financial Services (NYDSF) in the US, the Monetary Authority of Singapore (MAS) in Singapore, and FSRA in the Abu Dhabi Global Market.
The fintech company said it raised more than $540 million. Investors include Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital, and PayPal Ventures.
It also partners with major global enterprises to tokenize, custody, trade, and settle assets.
Its blockchain solutions are used by the likes of PayPal, Interactive Brokers, Mastercard, Mercado Libre, and Nubank.You might also likeBreaking: SEC Drops Probe Into Paxos, Affirming Stablecoins’ Non-Security Status