The Arbitrum Layer 2 network is now home to Paxos International’s yield-bearing stablecoin, Lift Dollar (USDL). With this expansion, the Arbitrum ecosystem will open for users and developers.
The purpose is to offer fast transactions and inexpensive means of gaming, social applications, and decentralized finance (DeFi). Integrating USDL will boost Arbitrum’s robust DeFi environment. Users will benefit from the unique feature of a regulated stablecoin.
With this launch, participants can enjoy safe yields and fast transactions. According to Ronak Daya, Head of Product at Paxos, that was the point. He said the expansion offered Ethereum-level security and faster speeds.
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Paxos demonstrates this development by committing to improving users’ overall blockchain experience.
Arbitrum Network Strengthened by USDL Launch
USDL adds to the more stablecoin options available on the Arbitrum network. This yield-bearing, regulated stablecoin would benefit both users and developers.
It allows us to create novel applications and new standards in DeFi, allowing collaboration to flourish. Additionally, A.J. Warner, Chief Strategy Officer at Offchain Labs, highlighted the importance of this addition.
He said that USDL’s presence helps build the new asset class of stablecoins on Arbitrum. It further bolsters the network’s dependence on stablecoins for its DeFi native space. Due to the unique attributes of USDL, developers can leverage them to write the next generation of blockchain applications.
It is possible to access all the unique use cases that leverage stablecoins’ advantages. Given the nature of this integration, this is expected to drive the evolution of decentralized applications in the Arbitrum ecosystem.
Paxos Maintains Trust Through USDL Backing
The Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market is regulated under its regulatory framework. It ensures that USDL maintains a 1:1 parity with the US dollar. This commitment raises user trust in the stability of the asset.
Paxos will hold high-quality liquid assets (US treasuries and cash equivalents for a short duration) to support this parity. This backing allows customers to redeem USDL for fiat whenever they like.
Residents of major jurisdictions, such as the United Kingdom, the United States, and the European Union, need help accessing USDL. However, the asset is still available to users in the Abu Dhabi Global Market.
Paxos Aims to Expand USDL Availability Globally
Launched USDL in June 2024, Paxos plans to develop partnerships with various global exchanges and platforms. The goal is to make the stablecoin available to as many individuals and institutions as possible, facilitating democratized access to safe yield.
The company has also partnered with large corporations to tokenize and settle assets, but its deals include collaborations with PayPal, Mastercard, and Nubank. Such alliances highlight how Paxos is helping blockchain solutions make an impact and grow the digital economy.
