Paxos International intends to launch a new stablecoin called Lift Dollar (USDL), CoinDesk has reported.
This interest-bearing stablecoin will be regulated on the Abu Dhabi Global Market and will earn an overnight yield based on the interest earned by Paxos International on its reserves.
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The USDL will be backed 1:1 by liquid US government securities and cash equivalent reserve assets held in accordance with requirements established by the ADGM Financial Services Regulatory Authority.
Instead of earning interest on these reserves, Paxos International will charge a fee to the issuer for the token.
The USDL yield will be distributed automatically through an Ethereum smart contract.