Stablecoin issuer Paxos has launched a yield-bearing stablecoin in Argentina. Available through crypto platforms Ripio, Buenbit, Manteca, and Plus Crypto, this new digital asset, dubbed Lift Dollar (USDL), aims to maintain its value to the dollar and offer users an opportunity to earn daily earnings from US government securities and cash equivalent assets.

Powered by Ethereum Smart Contracts

Ronak Daya, the Head of Product of Paxos International, said: "Lift Dollar is the first stablecoin designed to benefit token holders. Token holders and distribution partners receive daily yield through an Ethereum smart contract, with all the benefits of a regulated, trusted stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term platform."

"Our targeted launch in Argentina will ensure millions of token holders will now have safe access to US dollars that enables them to not only save and transact but also earn daily yield. We are pleased to work with these trusted platforms and look forward to growing our partnerships throughout the year."

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.

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— Paxos (@Paxos) June 5, 2024

According to a statement by Paxos, this yield is derived from a reserve of US government securities and cash equivalents managed under the supervision of the Financial Services Regulatory Authority of Abu Dhabi Global Market. This ensures that USDL is backed 1:1 by US dollars.

Focussing on Financial Inclusion

USDL reportedly uses an Ethereum smart contract to distribute the daily yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term directly to token holders without requiring any additional action on their part. The launch of USDL in Argentina is part of Paxos’ effort to enhance financial inclusion in the region through partnerships.

Last year, Paxos secured a preliminary license from the Abu Dhabi Global Market’s Financial Services Regulatory Authority. This approval allows the company to issue USD and other currency-backed stablecoins and offer crypto-brokerage and custody services. Paxos has already made significant strides in securing regulatory approvals, having previously received in-principle approval from Singapore’s Monetary Authority of Singapore.

Paxos’ strategy revolves around leveraging blockchain technology to create a more open and secure financial system. The firm’s stablecoins are backed 1:1 by the US Dollar and cash equivalents.