Popular stablecoin issuer Paxos is set to introduce a new U.S. dollar-backed stablecoin in Singapore, marking a significant step in its global expansion strategy.
In an official statement released on November 15, 2023, Paxos revealed that it obtained an in-principle approval from Singapore’s top financial regulator, the Monetary Authority of Singapore (MAS), for its new entity Paxos Digital Singapore Pte. Ltd., to offer digital payment token services in the country. This approval potentially allows Paxos to issue a new U.S. dollar-backed stablecoin compliant with MAS’ upcoming stablecoin regulatory framework.
According to the statement, MAS acknowledged that Paxos’ proposed stablecoin is substantively compliant with its framework, even before the legislation comes into force. Once granted full approval, Paxos aims to collaborate with enterprise clients to introduce the USD-backed stablecoin in Singapore.
This move builds on Paxos’s track record, as it already offers a U.S. dollar stablecoin (USDP) in the United States. The company has also partnered with various entities to issue stablecoins pegged to the Dollar, including a recent collaboration with PayPal on the PYUSD stablecoin.
Singapore seems to be of strategic importance for Paxos. Last year, it obtained a payment services license from MAS to provide crypto services like borrowing and lending for Singapore customers. This new approval solidifies Singapore as a hub for Paxos’ global expansion goals.
Paxos’s Head of Strategy, Walter Hessert, explained that the move signifies Paxos’s commitment to expanding its regulated platform and meeting the evolving needs of a global user base as the demand for dollar services increases globally.
Hessert stated,
“This in-principle approval from MAS will allow Paxos to bring its regulated platform to more users around the world. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”
Meanwhile, MAS has been actively exploring blockchain and related technologies and their regulatory implications. Earlier in August 2023, the regulator finalized regulations designed to ensure the reliability of stablecoins or any digital tokens pegged to the Singapore dollar and other major currencies for various payment and transaction purposes.
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