Lift Dollar is pegged 1:1 to the dollar value of U.S. Treasury short-term obligations. Unlike traditional forms of investing in debt instruments, the asset provides its holders with a daily payment of interest income.
Under the FSRA license, in order to maintain a 1:1 parity with the US dollar, Paxos International is required to hold in reserve high-quality liquid assets such as US dollar deposits, US short-term Treasury bonds and their equivalents.
“Unlike traditional financial models that require one-time payments, the USDL stablecoin will provide investors with access to the yields of US Treasury debt. Revenues will be distributed directly through smart contracts on the Ethereum blockchain at an overnight rate,” said Charles Cascarilla, a member of the board of directors of Paxos International.
In accordance with the issuance and offering plan, the USDL stablecoin will debut in the Argentine digital asset market with the support of local crypto platforms Tiendacrypto, Ripio, Buenbit, Manteca and Plus Crypto. The asset will not be available to residents of the continental US or other regions, including Japan, Hong Kong, the European Union, the UK, Singapore and the UAE itself, with the exception of the Abu Dhabi global market.
Previously, Paxos experts concluded that 99% of American financial companies are in one way or another exploring the possibility of incorporating blockchain and digital assets into business processes.
Source: Bits
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