Paxos to Issue USD Stablecoin in Singapore
17 Nov, 2023 ● Coin news
The financial regulator in Singapore has granted in-principle approval to Paxos, a cryptocurrency infrastructure company, for a new entity that plans to introduce a stablecoin backed by US dollars.
The Monetary Authority of Singapore (MAS) granted Paxos the green light for its new company, Paxos Digital Singapore Pte. Ltd., according to a statement released on November 15.
The new company intends to launch a USD stablecoin that complies with the stablecoin regulations proposed by the MAS, and it can provide digital payment token services.
Paxos stated that it will be able to collaborate with business clients to issue the stablecoin in Singapore after obtaining final approval.
“Global demand for the U.S. dollar has never been stronger, yet it remains difficult for consumers outside the U.S. to get dollars safely, reliably and under regulatory protections,” stated Paxos head of strategy Walter Hessert.
“This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world.”
The Malaysian Anti-Security Authority (MAS) released its final framework on August 15th, which aims to regulate stablecoins for non-bank issued tokens with a circulation exceeding 5 million Singapore dollars ($3.7 million) and a value pegged to the Singapore dollar or one of the G10 currencies, including the euro, British pound, and U.S. dollar.
PayPal introduced PYUSD, a stablecoin backed by the USD and distributed by Paxos, on August 7.
The New York Department of Financial Services ordered Paxos to stop issuing the token after the department classified the stablecoin as an unregistered security.
Paxos was the maker of Binance's now-defunct BUSD stablecoin.
Paxos clarified that its stablecoins are entirely collateralized by US dollars and their equivalents in cash.
To guarantee adherence, the company provides monthly attestations and reserve reports.