Paxos Debuts Yield-Bearing Stablecoin Issued by UAE Unit (1)

Paxos, the company behind PayPal Holdings Inc.’s stablecoin, introduced a similar token that will pay a roughly 5% yield, as crypto firms rush to take advantage of elevated interest rates.

The Lift Dollar, or USDL, is pegged to the greenback and issued by an affiliate Paxos set up in the United Arab Emirates, according to a statement on Wednesday. The unit, called Paxos International, will be regulated by Abu Dhabi’s Financial Services Regulatory Authority, the firm said.

New York-based Paxos opted to issue the stablecoin from Abu Dhabi because it was uncertain how USDL “would be treated under US ...