Stablecoin issuer Paxos has launched an income stablecoin in Argentina. The new digital asset, called Lift Dollar (USDL), which is available for purchase through crypto platforms Ripio, Buenbit, Manteca, and Plus Crypto, is designed to maintain its value against the U.S. dollar and provide users with the opportunity to earn daily returns from U.S. government securities and cash equivalent assets.

Powered by Ether Smart Contracts

Ronak Daya, Head of Product at Paxos International, said, “Lift Dollar is the first stablecoin designed to benefit token holders. Token holders and distribution partners receive daily earnings via Ether Smart Contracts while enjoying all the benefits of a regulated, trusted stablecoin. Stablecoin platform."

"Our targeted launch in Argentina will ensure that millions of token holders will now have secure access to the US dollar, allowing them to not only save and trade, but also earn daily returns. We are excited to work with these trusted platforms and look forward to growing our partnership throughout the year."

According to Paxos, the yield is sourced from the U.S. Government Securities and Cash Equivalent Reserve (USDL), which is regulated by the Financial Services Regulatory Authority of Abu Dhabi Global Markets. This ensures that USDL is pegged to the U.S. dollar at a 1:1 ratio.

Focus on financial inclusion

USDL reportedly uses an ethereum smart contract to distribute daily yield directly to token holders without any additional action on their part. The launch of USDL in Argentina is part of Paxos' efforts to enhance financial inclusion in the region through partnerships.

Last year, Paxos received an initial license from the Abu Dhabi Global Markets Financial Services Regulatory Authority. The approval allows the company to issue stablecoins backed by USD and other currencies, as well as provide cryptocurrency brokerage and custodian services.Paxos has already made significant progress in obtaining regulatory approvals, having previously received in-principle approval from the Monetary Authority of Singapore.

Paxos' strategy is to utilize blockchain technology to create a more open and secure financial system. The company's stablecoin is pegged to the U.S. dollar and cash equivalents on a 1:1 basis.