Paxos Receives Preliminary Approval from Singapore's Regulator for USD-Backed Stablecoin Launch
Summary:
Paxos, a crypto infrastructure company, has received preliminary approval from the Monetary Authority of Singapore (MAS) for a new entity, Paxos Digital Singapore Pte. Ltd., which aims to launch a USD-backed stablecoin. The firm hopes to offer digital token payment services and plans to comply with MAS' proposed stablecoin regulations. Final approval will enable Paxos to collaborate with corporate customers in Singapore to issue the stablecoin and expand its regulated platform globally.
Paxos, a firm specialising in crypto-related infrastructure, has received preliminary approval from the regulatory body in Singapore, the Monetary Authority of Singapore (MAS), for the introduction of a new entity. Paxos Digital Singapore Pte. Ltd., the intended entity, is projected to launch a stablecoin anchored to the U.S. dollar. On November 15, Paxos revealed this initial go-ahead, citing plans for its new venture to provide digital token payment services, alongside the issuance of a USD stablecoin, aligned with the proposed stablecoin regulations by MAS.
Once the final approval is achieved, Paxos will have the ability to collaborate with corporate clients for the issue of the stablecoin in Singapore. Walter Hessert, Paxos' Head of Strategy, reflected on the continuously growing global demand for dollars, while acknowledging the challenges facing consumers outside the U.S. in obtaining dollars securely, dependably, and under regulatory supervision. He stated that this in-principle approval provides Paxos with the capacity to expand its regulated platform to an increasing number of global users.
The MAS, on August 15, unveiled its final framework for the regulation of stablecoins, with a focus on non-bank issued tokens tied to the value of the Singapore dollar or G10 currencies such as the euro, the British pound, and the U.S. dollar, with a circulation surpassing 5 million Singapore dollars ($3.7 million).
In other related news, on August 7, Paxos was behind the issuance of PayPal's USD-anchored stablecoin, named PYUSD. In the past, Binance's discontinued stablecoin, termed BUSD, was minted by Paxos, but the company was mandated by the New York Department of Financial Services to halt its issuance, proclaiming the stablecoin an unregistered security. Paxos reassured that all of its stablecoins are completely backed by the U.S. dollar and equivalents in cash, publishing monthly attestations and reserve reports to establish adherence to regulatory standards.
Published At
11/16/2023 2:53:44 AM
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