Paxos International has launched its high-yield stablecoin Lift Dollar on the Ethereum Layer 2 network Arbitrum.
Paxos’ UAE-based subsidiary, regulated by the Abu Dhabi Financial Services Regulatory Authority, announced on October 9 the expansion of Lift Dollar (USDL) into Arbitrum (ARB).
Paxos’ announcement comes just weeks after the company revealed plans to bring its product to Ethereum (ETH) Layer 2 scaling solution.
What is a lift dollar?
USDL is a stablecoin pegged 1:1 to the US dollar and offers its holders a yield on its reserves (cash and cash equivalents). Lift Dollar uses Ethereum smart contracts to distribute its yield daily to eligible wallets without any additional steps required by the holder.
Because Lift Dollar is a regulated yield-bearing token, developers on the Arbitrum network have another asset they can leverage to build and deploy new applications that drive DeFi growth. Masu.
AJ Warner, chief strategy officer at Offchain Labs, said the addition of USDL is a boost for Arbitrum. Warner said stablecoins enable cost-effective and fast transactions across the L2 network, benefiting applications and use cases such as gaming, social, and decentralized finance.
These are ecosystems that are gaining momentum as the use of stablecoins expands globally. Paxos is one of the major players along with Tether and Circle.
Paxos and Arbitrum partnership
Paxos International launched Lift Dollar in June 2024, with USDL distributed through partnerships with major crypto exchanges, wallets, and trading platforms.
The company authorized issuance to individuals and institutions, but noted that consumers in certain jurisdictions were not eligible for issuance. Such markets include the United States, United Kingdom, Canada, Hong Kong, European Union, etc.
In September 2024, Paxos announced plans to integrate with Arbitrum. The partnership aims to accelerate institutional integration across the Arbitrum network, with Paxos helping bring real-world assets to the platform through regulated assets.
Paxos issues several other regulated digital assets, including Pax Dollar (USDP), PayPal USD (PYUSD), and Pax Gold (PAXG).
