Paxos International Launches Yield-Bearing Stablecoin in Argentina

Paxos International, the UAE-based affiliate of Paxos, has announced Lift dollar (USDL) – a yield-bearing stablecoin issued under regulatory supervision – is now available to consumers in Argentina via distribution partners Ripio, Buenbit, Manteca and Plus Crypto.

USDL is unmatched in the market as holders earn overnight yield from short-term, the minimal-risk US government securities and cash equivalent assets held under the safe protection and custody requirements of the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM).

This reserve structure is like other Paxos-issued US dollar stablecoins that are backed 1:1. USDL is issued on Ethereum and pays yield programmatically on a daily basis to token holders.

USDL marks an important innovation in democratising overnight yield by shifting interest earned on stablecoin reserve holdings directly to eligible end holders from the central issuer. This follows Paxos’s proven history of building blockchain solutions for financial institutions and industry leaders.

Using an Ethereum smart contract, USDL distributes the yield generated from its reserves to eligible wallet addresses daily without requiring any additional steps by the token holder. This results in a seamless experience for token holders as their USDL wallet holdings increase every day.

Paxos will retain an issuer fee and pay out the remaining yield earned based on prevailing daily market conditions. Companies in permitted jurisdictions interested in enabling USDL on their platforms can onboard with Paxos International.

Benefits Token Holders

Ronak Daya, Head of Product of Paxos International, said that the Lift Dollar is the first stablecoin designed to benefit token holders. Token holders and distribution partners receive daily yield, through an Etherum smart contract, with all the benefits of a regulated, trusted stablecoin platform. Daya also said that Paxos International has partnered with leaders Ripio, Buenbit, Manteca and Plus Crypto to ensure customers in Argentina are receiving tokens from safe and secure channels.

“Our targeted launch in this market 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,” Daya added.

RIPIO’s CEO and co-founder Sebastian Serrano said that the launch of USDL by Paxos represents another significant step in the commitment to offering users robust and reliable options in the world of cryptocurrencies. We are excited to list USDL on our app and continue to provide access to innovative financial tools that promote inclusion and economic freedom for all.

Buenbit CEO Federico Ogue said that yield bearing stablecoins are the future of stablecoins as they share revenue generated with the end user. We are glad that Paxos was the first big stablecoin issuer to take this step forward as it is one of the most reputable companies in the field, Ogue added.