Paxos Launches USDL Stablecoin on Arbitrum
Paxos International, an affiliate of Paxos, recently announced the availability of Lift Dollar (USDL), a yield-bearing stablecoin, on the popular Layer 2 scaling solution, Arbitrum. This move is expected to enhance the DeFi ecosystem by providing safe yield and cost-effective, fast transactions.
With the expansion of USDL onto Arbitrum, users and developers in the network can benefit from the stability of a stablecoin that distributes yield naturally. This Development marks a significant milestone in the DeFi sector, offering Ethereum-level Security with faster and cheaper transactions.
Key Points:
- Paxos International launches USDL stablecoin on Arbitrum.
- USDL unlocks safe yield and fast transactions on the Ethereum scaling solution.
- USDL is the latest addition to stablecoins available on Arbitrum.
- Regulated stablecoin adds a new dimension to DeFi ecosystem.
Driving Innovation in DeFi
A.J. Warner, Chief Strategy Officer at Offchain Labs, the team behind Arbitrum, highlighted the significance of adding a regulated, yield-bearing stablecoin to the network. This move enables ecosystem innovators to build advanced applications and use cases, setting a new standard for DeFi on Arbitrum.
However, it's important to note that USDL is not accessible to residents of certain jurisdictions, including the US, EU, UK, Canada, and others, except for the Abu Dhabi Global Market.
Encouraging Adoption and Industry Expansion
Paxos International, regulated by the Abu Dhabi Global Market's Financial Services Regulatory Authority, maintains a 1:1 parity between USDL and USD. The stablecoin holds high-quality liquid assets to back USD deposits, ensuring customers can redeem USDL for fiat at all times.
The introduction of USDL aims to democratize access to safe yield, combining the stability of USD with Blockchain efficiency. By allowing holders to earn yield on Reserve daily, USDL promotes broad stablecoin adoption and industry Growth.
Highlights:
- Paxos International ensures 1:1 parity between USDL and USD.
- USDL holders benefit from daily yield distributions.
- Paxos facilitates regulated stablecoins like PayPal USD and Pax Gold.
- Partnerships with global Exchanges and Platforms to distribute USDL.
Regulatory Compliance and Partnerships
Paxos collaborates with major global enterprises to tokenize, custody, and trade assets. The Fintech company has raised over $540 million in funding and counts Oak HC/FT, Declaration Partners, and PayPal Ventures among its investors.
Regulated by authorities like NYDFS and MAS, Paxos plays a key role in Blockchain Solutions used by industry giants such as PayPal, Mastercard, and Interactive Brokers.
Overall, the launch of USDL on Arbitrum represents a significant advancement in the DeFi sector, driving Innovation and accessibility in the Digital asset space.
