• 16 July, 2024
News

Paxos Gains In-Principle Approval to Issue USD-Backed Stablecoin in Singapore

Paxos, a tokenization infrastructure platform currently at the forefront of stablecoin utility and mainstream adoption, has received in-principle approval from the regulators to offer digital payment token services in Singapore. The Monetary Authority of Singapore (MAS) has given a nod for Paxos Digital Singapore Pte. Ltd. to issue USD-backed stablecoin in Singapore. 

Colin Wu, a Chinese crypto reporter, shared a tweet on his Wu Blockchain page, providing insights on Paxos’ move. As per reports, the issued stablecoins will follow the regulations set by MAS.

Once Paxos receives full approval from MAS to conduct business, they have plans to partner up with enterprise clients to issue USD-backed stablecoins. The firm hopes that the approval from MAS will enable Paxos to bring its regulated platform to more users around the world. Paxos head of strategy Walter Hessert cited,

Global demand for the U.S. dollar has never been stronger, yet it remains difficult for consumers outside the U.S. to get dollars safely, reliably, and under regulatory protections.

In August of this year, MAS finalized its framework for regulating stablecoins, aiming for non-bank issued tokens underpinning the value of the Singapore dollar or G10 currencies like the Euro, British Pound, and US dollar. Crypto companies planning to reorganize their stablecoins as “MAS-regulated stablecoins” need to comply with the new framework.

The New York Department of Financial Services issued an order to terminate the issuance of BUSD stablecoin, which was minted by Paxos. On August 7, Paxos issued a USD-backed stablecoin called PYUSD, launched by Paypal. 

Currently, Paxos is one of the two companies to get approval from MAS to issue stablecoin in Singapore, while the other is StraitsX. Although Paxos announced it will issue a new stablecoin, there have been no revelations about its name or specific details.  

Paxos already has a USD-backed stablecoin called USDP in its home country, the US. The reason for setting up a separate entity in Singapore is to comply with local regulations and to facilitate partnerships for the issuance of the new stablecoin.

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