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Paxos Gains MAS Nod For USD Stablecoin Launch In Singapore – Crypto News

Published

2 years ago

November 16, 2023

Dripp

Paxos, the renowned blockchain and tokenization infrastructure platform, has achieved in-principle approval from the Monetary Authority of Singapore (MAS) for its latest venture, Paxos Digital Singapore Pte. Ltd. Meanwhile, this new entity is set to introduce a USD-backed stablecoin, aligning with MAS’ stablecoin regulatory framework.

Notably, the move signifies Paxos’ commitment to global expansion and adherence to regulatory compliance, underscoring its position as a leader in the blockchain space.

Paxos To Launch USD Stablecoin In Singapore

According to a recent announcement, Paxos secured an in-principle approval from MAS, marking a significant milestone for the blockchain platform. The approval empowers Paxos Digital Singapore Pte. Ltd. to offer digital payment token services, including the issuance of a MAS-approved USD stablecoin.

Notably, Walter Hessert, the firm’s Head of Strategy, highlights the global demand for the U.S. dollar and outlines the approval’s potential to bring regulatory-compliant platforms to users worldwide.

Meanwhile, Paxos’ strategic move aligns with MAS’ stablecoin regulatory framework finalized in August. The framework aims to regulate stablecoins pegged to the Singapore dollar or major currencies like the USD.

In addition, this approval places the firm among the select few, emphasizing its commitment to compliance. The new stablecoin is poised to address the challenges of obtaining USD safely for consumers outside the U.S., fostering a more inclusive financial landscape.

Meanwhile, the company currently offers a USD-backed stablecoin named USDP within its home country, the United States. Considering that, it can be said that the establishment of the Singapore entity serves the dual purpose of ensuring compliance with local regulations and fostering partnerships with enterprise clients for the issuance of the USD-backed stablecoin in Singapore.

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A Closer Look Into The Updates

Paxos, already recognized as the most comprehensively regulated blockchain platform globally, further strengthens its position with this approval. The company’s adherence to AML and KYC standards, coupled with its commitment to transparency and integrity, positions it as a reliable partner for enterprises.

As the firm expands its footprint in Singapore, the approval from MAS underscores the company’s dedication to pioneering regulated blockchain solutions. The imminent launch of the USD stablecoin in Singapore heralds a new era of financial accessibility and transparency.

In August, PayPal introduced the PYUSD stablecoin, backed by the U.S. dollar and issued by Paxos. Previously, Binance partnered with Paxos for its BUSD stablecoin; however, Paxos ceased BUSD issuance following an order from the New York Department of Financial Services.

Meanwhile, the new Singapore entity of the company represents Paxos’s second regulated firm in Singapore. The initial entity secured a license from MAS in the preceding year, enabling the provision of digital payment token services under the Payment Services Act 2019. Notably, Paxos claimed to be the first U.S.-based crypto firm to obtain this license.

The acquisition of this license facilitated the onboarding of Singapore-based customers onto Paxos’s crypto brokerage platform, allowing them to engage in various cryptocurrency activities.

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