Paxos Announces New USD Stablecoin in Singapore
- Blockchain payments firm Paxos is set to debut a new USD stablecoin in Singapore.
- The firm has received initial approval from the Monetary Authority of Singapore (MAS).
- The approval will allow the firm to create a new corporate entity, Paxos Digital Singapore Pte. Ltd.
- The firm will create and issue a USD stablecoin cleared under the MAS’ proposed stablecoin regulations.
Paxos, a blockchain payments firm based in New York City, has announced a new stablecoin backed by the United States dollar in Singapore. The city state has witnessed a surge in applications from firms seeking to provide blockchain-focused services and has developed a crypto-friendly environment.
According to a November 15 statement, Paxos has received initial approval from the Monetary Authority of Singapore (MAS) for its new corporate entity, Paxos Digital Singapore Pte. Ltd. Under this approval, the new firm will have the ability to create and issue a USD stablecoin cleared under the MAS’ proposed stablecoin regulations.
Walter Hessert, Head of Strategy at Paxos, noted that the “global demand for the US dollar has never been stronger,” while adding that it “remains difficult for consumers outside the US to get dollars safely, reliably, and under regulatory protections.”
“This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs,” Hessert said.
Singapore has emerged as one of the most crypto-friendly regions around the globe. Recently, prominent blockchain firms like Upbit, Blockchain.com, Circle, Ripple, and others received regulatory clearance for the MAS. Leading American exchange Coinbase also obtained a Major Payment Institution (MPI) license from the regulator.
In the press release, Paxos noted that it seeks to “open the financial system to everyone” by leveraging blockchain technology while “introducing significant opportunities to global markets and billions of users.”
Further, the firm maintains KYC and AML compliance with authorities in the United States and Singapore. It was the first blockchain firm in 2022 to obtain a license from the MAS to offer digital payment token services under the Payment Services Act 2019.
“Stablecoins issued in accordance with standards set by global prudential regulators represent a significant step towards democratizing access to commerce and financial services. Paxos is committed to integrity and transparency in its operations and the company will only issue tokens that are subject to oversight by prudential regulators,” noted the firm.
Interestingly, Paxos recently ended its deal with the world’s largest crypto exchange, Binance, and stopped issuing BUSD, leading to a significant decline in the market capitalization of the stablecoin. The firm was sued by the United States Securities and Exchange Commission (SEC) over BUSD.