Paxos Expands Stablecoin Issuance into Singapore After Receiving MAS Approval

In August 2023, the Monetary Authority of Singapore (MAS) finalised its stablecoin regulatory framework, facilitating the use and development of the digital assets in the country

Singapore’s Monetary Authority (MAS) finalised its stablecoin regulatory framework in August 2023, paving the way for the widespread use and development of digital assets in the country.

Nearly a year later, Paxos, a regulated blockchain and tokenisation infrastructure platform, is setting its sights on expanding into the pro-stablecoin region.

The Monetary Authority of Singapore has granted approval to Paxos’ Singapore entity, Paxos Digital Singapore Pte. Ltd., to provide digital payment token services as a Major Payments Institution. This approval will allow Paxos to issue stablecoins within the parameters of the upcoming stablecoin framework established by MAS.

Singapore becomes the third market, following the US and United Arab Emirates, where Paxos and its related entities are licensed to issue stablecoins with this approval. It highlights Paxos’ commitment to expanding access to regulated, secure stablecoins on a global scale.

Walter Hessert, head of strategy at Paxos, commented on the development: “Stablecoins issued in accordance with standards set by a regulator like MAS – renowned for its rigorous regulatory standards – represent a significant step towards democratising access to commerce and financial services. Receiving approval from MAS is an important development for Paxos and our global enterprise partners to work towards safely offering access to US dollars for more users around the world.”

Enlisting DBS Bank for Stablecoin Reserves

One crucial aspect that instills confidence in a stablecoin among users is having a trusted institutional-grade partner. In this regard, Paxos has chosen DBS Bank as its primary banking partner for the cash management and custody of stablecoin reserves.

Evy Theunis, head of digital assets, institutional banking group at DBS Bank, stated: “We are pleased to support Paxos’ new chapter in Singapore. We firmly believe that trust and security are key to wider stablecoin adoption. Having examined all relevant aspects that come with managing reserve assets, stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now.”

The Monetary Authority of Singapore’s full approval for Paxos reinforces the company’s commitment to operating within regulated frameworks as it expands its products and services to global markets. This milestone showcases Paxos as a comprehensively regulated blockchain platform, adhering to the highest operating standards in New York, United Arab Emirates’ Abu Dhabi Global Market and Singapore.

The author of this article is The Fintech Times.

The above is the detailed content of Paxos Expands Stablecoin Issuance into Singapore After Receiving MAS Approval. For more information, please follow other related articles on the PHP Chinese website!