The yield-bearing stablecoin Lift Dollar from Paxos International has been introduced on the Ethereum layer-2 network Arbitrum.
On October 9, the Financial Services Regulatory Authority of Abu Dhabi stated that Lift Dollar (USDL) would expand to Arbitrum.
Lift Dollar is a subsidiary of Paxos based in the United Arab Emirates. Only a few weeks have passed since Paxos first disclosed its intentions to integrate its goods with Ethereum’s layer 2 scaling solution.
A stablecoin with a 1:1 correlation to the US dollar, USDL provides its holders with yield derived from its reserves of cash and currency equivalents.
Lift Dollar distributes its payout to qualified wallets daily without requiring holders to take further action via an Ethereum smart contract.
Now that Lift Dollar is a legal yield-bearing token, Arbitrum network developers have another resource at their disposal to create and implement fresh apps that promote DeFi expansion.
Offchain Labs’ chief strategy officer, A.J. Warner, stated that USDL’s presence strengthens Arbitrum. According to Warner, the stablecoin makes it possible for quick and inexpensive transactions to take place throughout the L2 network.
Use cases and applications in the fields of social, decentralized finance, and gaming stand to gain from this.
These are ecosystems that are becoming more and more popular as stablecoin usage grows throughout the world. Among the big players are Paxos, Tether, and Circle.
Paxos and Arbitrum Partnership
In June 2024, Paxos International introduced Lift Dollar, with USDL being distributed through alliances with significant cryptocurrency exchanges, wallets, and trading platforms.
The corporation stated that although it permitted issuance to individuals and institutions, customers in specific jurisdictions needed to be qualified.
These markets included, but were not limited to, the US, the UK, Canada, Hong Kong, and the EU. Paxos revealed plans to combine with Arbitrum in September 2024.
Using its regulated assets, Paxos assisted in bringing real-world assets to the platform, with the goal of the cooperation facilitating institutional integration throughout the Arbitrum network.
Other regulated digital assets issued by Paxos include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
