Paxos Gains Full Regulatory Approval from Singapore's MAS, Teams Up with DBS Bank
Summary:
The blockchain and tokenization platform, Paxos International, has received full regulatory approval from the Monetary Authority of Singapore (MAS). This permits Paxos to offer digital payment token services as a Major Payments Institutions and launch a stablecoin compliant with MAS' future regulatory framework. DBS, Southeast Asia’s largest bank, will serve as Paxos' primary banking partner, managing cash and custodying stablecoin reserves. This development represents a key step in Paxos' global expansion efforts, already extended to the US, UAE, and now Singapore.
The Singapore division of Paxos International blockchain and tokenization company has been granted full regulatory approval by the Monetary Authority of Singapore (MAS). This authorization allows Paxos, the creators of the gold-backed stablecoin Pax Gold (PAXG), to provide digital payment token services as a Major Payments Institutions. This also paves the way for the roll-out of a stablecoin in adherence to the forthcoming regulatory structure of MAS. This regulatory nod is significant as it marks the third international market, following the United States and the United Arab Emirates, where Paxos-linked bodies have the authority to circulate stablecoins, as stated in a July 1 proclamation. Walter Hessert, Paxos' strategy chief, endorsed the significance of this MAS approval for the broader worldwide adoption of Paxos' regulated stablecoin.
DBS, the largest Southeast Asian bank in terms of managed assets, has been selected as the primary bank for Paxos. In this partnership, Paxos will delegate cash management and custody of stablecoin reserves to DBS. Trust and security, as pointed out by Evy Theunis, DBS Bank's head of digital assets, are key drivers for broader adoption of stablecoins.
This Singapore approval marks a major turn in Paxos' global growth aspirations. At the early part of June, Paxos made known its plan to issue a interest-accruing stablecoin, the Lift Dollar (USDL), regulated within the Abu Dhabi Global Market (ADGM), and would earn overnight yield from the interest accrued on its reserves. Centred in New York, Paxos operates under the regulation of the New York Department of Financial Services (NYDFS), issuing PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).
Published At
7/2/2024 4:17:21 PM
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