- The new Lift Dollar (USDL) stablecoin from Paxos provides daily yield derived from US government securities.
- USDL is issued on the Ethereum blockchain.
- USDL is currently available in the UAE, Europe, the UK, and Japan.
Paxos International has launched Lift Dollar (USDL), a regulated stablecoin issued under the Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA). Designed to expand access to yield-bearing reserve returns, USDL represents a notable shift in how stablecoin returns are distributed.
The unique features of Lift Dollar (USDL)
USDL differentiates itself by delivering overnight yield to token holders. The yield is generated from short-term, high-quality US government securities and other cash-equivalent reserve assets that back the circulating supply. Instead of accumulating interest at the issuer level, USDL passes those returns directly to holders on a daily basis.
This model effectively democratizes access to interest income that has historically been available mainly to institutional investors, enabling individual users to receive programmatic daily returns similar to a savings product. The predictable, consistent yield sets USDL apart from typical stablecoins that operate more like non-yield-bearing transaction accounts.
Paxos International issues USDL permissionlessly on the Ethereum blockchain, supporting transparency and broad accessibility. That permissionless issuance means anyone on Ethereum can interact with the token, subject to regional availability and regulatory constraints.
Regulatory compliance and strategic availability
USDL is issued by Paxos International through its UAE entity and complies with the FSRA’s regulatory framework. Paxos emphasizes strict adherence to regulatory standards to provide a secure and reliable stablecoin product. Reserve assets backing USDL are structured to remain protected in the event of issuer insolvency, helping preserve the stablecoin’s value for holders.
Because of the current absence of specific regulatory guidance in the United States, USDL is not available to US-based users. Paxos has instead focused on jurisdictions with clearer frameworks and demand for yield-bearing stablecoins, targeting Europe, the United Kingdom, and Japan. This targeted rollout aims to reach markets where regulatory conditions and investor appetite are more favorable.
Paxos CEO Charles Cascarilla notes that USDL follows the same structural principles as Paxos’s existing stablecoins—such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG)—namely 1:1 backing to the dollar with reserves held in short-term US government securities. That consistency is intended to promote trust and stability.
Looking ahead, Paxos plans to integrate USDL with exchanges and wallet providers to expand liquidity, usability, and adoption. By combining regulatory oversight, transparent issuance on Ethereum, and daily yield distribution, Lift Dollar aims to become a competitive option in the evolving stablecoin landscape.