The Lift Dollar is pegged at a ratio of 1:1 to the dollar value of the short-term obligations of the U.S. Treasury. Unlike traditional forms of investing in debt instruments, an asset assumes daily payment of interest income to its holders.
According to the FSRA license, in order to maintain 1:1 parity against the US dollar, Paxos International is required to hold high-quality liquid assets in reserve, such as deposits in US dollars, US short-term Treasury bonds and their equivalents.
"Unlike traditional financial models involving one-time payments, the stable USDL coin will provide investors with access to yields on U.S. Treasury debt obligations. Revenues will be distributed directly through smart contracts on the Ethereum blockchain at the overnight rate," assured Charles Cascarilla, member of the Board of Directors of Paxos International.
In accordance with the issue and supply plan, the USDL stablecoin will make its debut on 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 United States or other regions, including Japan, Hong Kong, the European Union, the United Kingdom, Singapore and the UAE itself, with the exception of the global Abu Dhabi market.
Earlier, Paxos experts concluded that 99% of American financial companies are somehow exploring the possibility of including blockchain and digital assets in business processes.