December 4, 2023

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Paxos will issue a stablecoin pegged to the US dollar in Singapore

Paxos will issue a stablecoin pegged to the US dollar in Singapore

Cryptocurrency Infrastructure Company; Paxos has received preliminary approval from Singapore’s regulatory body to create a new entity that plans to launch a stablecoin backed by the US dollar.

in statement On November 15, Paxos said it had received in-principle approval from the Monetary Authority of Singapore (MAS) for its new entity, Paxos Digital Singapore Pte. Ltd. The new company may offer token services for digital payments and plans to issue a stablecoin in US dollars under the law. Regulations proposed by MAS.

Once it receives full approval, Paxos said it will be able to partner with institutional customers to issue the stablecoin in Singapore.

“Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to obtain dollars safely, reliably and with regulatory protection,” said Walter Hessert, chief strategy officer at Paxos. “This initial approval from MAS will allow Paxos to offer its regulated platform to more users around the world.”

On August 15, the Monetary Authority of Singapore announced its final framework for regulating stablecoins designated for tokens issued by non-bank entities and pegged to the value of the Singapore dollar or G10 currencies such as the euro, British pound and US dollar, with a circulation exceeding S$5 million ($3.7 million). .

On August 7, PayPal launched its US dollar-backed stablecoin – PYUSD – issued by Paxos.

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Paxos previously minted Binance’s now-defunct stablecoin BUSD, but was ordered by the New York Department of Financial Services to stop issuing the token after the agency declared the stablecoin an unregistered security.

Paxos explained that all of its stablecoins are fully backed by US dollars and cash equivalents, adding that it issues monthly certifications and reserve reports to ensure compliance.

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