The Arbitrum Layer 2 Network is currently home to Paxos International’s high-yield stablecoin, Lift Dollar (USDL). This expansion opens up the Arbitrum ecosystem to users and developers.
Its aim is to provide fast transactions and an inexpensive means of gaming, social applications, and decentralized finance (DeFi). USDL integration powers Arbitrum’s robust DeFi environment. Users can benefit from the unique features of a regulated stablecoin.
This launch will enable participants to enjoy secure yields and fast trading. That was the point, according to Ronak Daya, head of product at Paxos. He said the expansion provided Ethereum-level security and faster speeds.
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Paxos is demonstrating this development by working to improve the overall blockchain experience for users.
Arbitration network strengthened with the launch of USDL
USDL adds to the stablecoin options available on the Arbitrum network. This high-yielding, regulated stablecoin will benefit both users and developers.
This will allow DeFi to create new applications and new standards, allowing collaboration to flourish. Additionally, AJ Warner, Chief Strategy Officer at Offchain Labs, emphasized the importance of this addition.
He said that the presence of USDL will help create a new asset class called stablecoins on Arbitrum. This further strengthens the network’s reliance on stablecoins in the DeFi native space. USDL’s unique attributes allow developers to leverage it to create next-generation blockchain applications.
You have access to all the unique use cases that leverage the benefits of stablecoins. Given the nature of this integration, it is expected to drive the evolution of decentralized applications in the Arbitrum ecosystem.
Paxos maintains trust through USDL support
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market is regulated under its regulatory framework. This ensures that USDL maintains 1:1 parity with the US dollar. This initiative increases users’ confidence in the stability of their assets.
Paxos intends to hold high quality liquid assets (US government bonds and short-term cash equivalents) to support this parity. This backing allows customers to redeem USDL for fiat currency whenever they want.
Residents of major jurisdictions such as the United Kingdom, United States, and European Union need assistance accessing USDL. However, the asset remains available to users of the Abu Dhabi Global Market.
Paxos aims to expand USDL availability globally
Paxos, which launched USDL in June 2024, plans to develop partnerships with various global exchanges and platforms. The goal is to make stablecoins available to as many individuals and institutions as possible, facilitating democratized access to secure yields.
The company also partners with large corporations for asset tokenization and payments, including partnerships with PayPal, Mastercard, and Nubank. Partnerships like this highlight how Paxos is helping blockchain solutions impact and grow the digital economy.
