Paxos International Launches Lift Dollar (USDL): A Game-Changing Stablecoin with Daily Yield
Paxos International, a UAE-based affiliate of the globally recognized fintech firm Paxos, has introduced Lift Dollar (USDL) [1], a revolutionary US dollar-backed stablecoin that redefines how users engage with digital assets. Unlike traditional stablecoins, USDL offers daily yield distribution directly to holders’ wallets, marking a significant step toward democratizing access to safe, regulated financial returns. Issued under the stringent oversight of the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM), USDL combines stability, transparency, and innovation to set a new standard in the stablecoin market. USDL can be on ramping to 170 countries [4].
A Stablecoin That Pays Daily Yield
Lift Dollar (USDL) is designed to maintain a 1:1 parity with the US dollar, backed by high-quality liquid assets such as US dollar deposits, short-duration US Treasuries, and cash equivalents. What sets USDL apart is its unique ability to distribute yield [2] generated from these reserves to eligible token holders every day through an Ethereum smart contract. This “rebasing” mechanism ensures a seamless experience, automatically increasing wallet balances without requiring additional actions from users. According to Paxos, this feature allows USDL holders to earn a risk-free return, with yields reported to be around 5% annually, close to the current effective federal funds rate.
“USDL is the first stablecoin designed to benefit token holders directly,” said Ronak Daya, Head of Product at Paxos. “By leveraging an Ethereum smart contract, we ensure that eligible users and distribution partners receive daily yield, combining the benefits of a regulated, trusted stablecoin platform with seamless financial growth.”
Regulatory Oversight and Transparency
USDL is issued by Paxos Issuance MENA Ltd. (“Paxos International”), a wholly owned subsidiary of Paxos Holding LLC, incorporated in Delaware. Licensed and regulated by the FSRA under Financial Services Permission No. 220167, Paxos International adheres to rigorous standards to ensure customer protection. The stablecoin’s reserves are held in segregated accounts, safeguarding them from potential bankruptcy scenarios and guaranteeing that 1 USDL can always be redeemed for 1 US dollar. Monthly audited reports detailing reserve composition and yield generation are publicly available, reinforcing USDL’s commitment to transparency.
The FSRA’s robust regulatory framework has positioned ADGM as a hub for financial innovation, and USDL’s compliance with these standards underscores its reliability. “Paxos is committed to revolutionizing global financial markets through trusted, regulated blockchain offerings,” said Charles Cascarilla, Member of the Board of Directors at Paxos International. “USDL is a pivotal step toward a more inclusive and accessible financial system.”
Global Accessibility with Strategic Partnerships
Launched initially in Argentina on June 5, 2024, through partnerships with crypto platforms like Ripio, Buenbit, Manteca, and Plus Crypto, USDL has quickly gained traction. These collaborations ensure safe and secure access to USDL for millions of users, particularly in regions with high demand for stable, yield-generating assets. Paxos has since expanded USDL’s availability to the Arbitrum blockchain, unlocking cost-effective and fast transactions for DeFi, gaming, and social ecosystems.
A notable partnership announced on May 19, 2025, with Velo Labs further amplifies USDL’s reach [3]. Velo Labs, a leader in Web3-powered financial infrastructure, has integrated USDL as a reserve collateral and settlement asset within its USDV stablecoin framework. This collaboration enhances the quality of assets backing USDV and positions USDL as a key player in Southeast Asia’s growing digital asset market.
“By leveraging USDL’s unique yield-bearing capabilities, we are providing our ecosystem members, especially businesses, with a powerful tool to optimize liquidity and financial strategies,” said Tridbodi Arunanondchai, Vice Chairman of Velo Protocol.
A New Era for Stablecoins
Unlike traditional stablecoins like USDT and USDC, which do not distribute yield to holders, or typical savings accounts that may lack the flexibility of on-chain assets, USDL offers a compelling alternative. Its daily yield distribution, regulatory oversight, and seamless integration into blockchain ecosystems make it a standout option for both individuals and businesses. However, USDL is not available in certain jurisdictions, including the United States, the United Kingdom, the European Union, Canada, Hong Kong, Japan, Singapore, and the UAE outside of ADGM, due to varying regulatory requirements.
For eligible users, USDL provides a secure and innovative way to earn yield on US dollar-backed assets. Businesses can acquire USDL through institutional accounts with Paxos International or via global exchanges, while individuals can access it through trusted distribution partners. Complaints or inquiries about USDL can be directed to Paxos International or the FSRA, ensuring robust customer support.
Looking Ahead
As the digital asset landscape evolves, USDL represents a bold step toward making financial markets more inclusive and efficient [5]. By combining the stability of a US dollar-backed stablecoin with the benefits of daily yield, Paxos International is paving the way for a new era of financial empowerment. With plans to expand partnerships globally, USDL is poised to become a cornerstone of the stablecoin ecosystem, offering users worldwide a safe and rewarding way to engage with digital currencies.