​Paxos Expands Yield-Boosting USDL to Arbitrum

Paxos Expands Yield-Bearing Stablecoin Lift Dollar to Arbitrum

Paxos International has officially launched its yield-bearing stablecoin, Lift Dollar (USDL), on the Ethereum layer-2 network, Arbitrum. This expansion marks a significant move for the UAE-based subsidiary of Paxos, which is regulated by Abu Dhabi’s Financial Services Regulatory Authority.

The announcement, made on October 9, follows just weeks after Paxos revealed plans to bring its products to Ethereum’s layer 2 scaling solution, Arbitrum (ARB). The integration aims to enhance the decentralized finance (DeFi) ecosystem on Arbitrum.

What is Lift Dollar (USDL)?

Lift Dollar (USDL) is a stablecoin pegged 1:1 to the U.S. dollar. It stands out by offering yield to its holders from its reserves, which consist of cash and cash equivalents. Using an Ethereum smart contract, USDL distributes this yield daily to eligible wallets without requiring holders to take any additional actions.

With its status as a regulated yield-bearing token, Lift Dollar provides developers on the Arbitrum network with a valuable asset for building and deploying new decentralized applications (dApps) aimed at driving further DeFi growth.

Benefits of USDL on Arbitrum

• Enables cost-effective and fast transactions across Arbitrum’s layer-2 network.
• Supports ecosystems in gaming, social platforms, and decentralized finance.
• Enhances global stablecoin adoption, contributing to the growth of DeFi solutions.

A.J. Warner, Chief Strategy Officer at Offchain Labs, highlighted that the addition of USDL to Arbitrum boosts the network’s potential for rapid, low-cost transactions. He noted that applications in gaming, social platforms, and DeFi will particularly benefit from this integration.

Paxos and Arbitrum Partnership

Paxos International first introduced Lift Dollar in June 2024. The stablecoin was distributed through partnerships with major cryptocurrency exchanges, wallets, and trading platforms. While USDL is available to individuals and institutions, Paxos has restricted access to users in certain regions, including the United States, the United Kingdom, Canada, Hong Kong, and the European Union.

In September 2024, Paxos announced its intention to integrate with Arbitrum, aiming to support institutional adoption on the network. The partnership is designed to help bring real-world assets onto Arbitrum’s platform via Paxos’ regulated digital assets.

Paxos’ Digital Assets Portfolio

• Pax Dollar (USDP)
• PayPal USD (PYUSD)
• Pax Gold (PAXG)

With a range of regulated digital assets, Paxos continues to be a leading player in the stablecoin space, alongside industry giants like Tether and Circle.