Paxos International, a blockchain and tokenization platform, has secured full regulatory approval from the Monetary Authority of Singapore (MAS).
In Singapore, Paxos, the issuer of the gold-backed stablecoin Pax Gold (PAXG), has been granted permission to provide digital payment token services as a Major Payments Institution.
This regulatory green light allows Paxos to introduce a stablecoin that complies with MAS’ forthcoming regulatory framework. Notably, this marks the third international market where Paxos entities are authorized to issue stablecoins, following the United States and the United Arab Emirates, as stated in a press release on July 1.
The approval from MAS signifies a significant stride in Paxos’ global strategy to expand their portfolio of regulated stablecoin offerings worldwide, affirmed Walter Hessert, Paxos’ Head of Strategy.
In support of these initiatives, Paxos has selected DBS, the largest bank in Southeast Asia by assets under management, as its principal banking partner. DBS will manage cash operations and secure custody of the stablecoin reserves, according to the announcement.
Evy Theunis, DBS Bank’s Head of Digital Assets, emphasized that trust and security are pivotal for enhancing the adoption of stablecoins on a broader scale.
This regulatory approval in Singapore is the latest achievement in Paxos’ ongoing efforts to expand internationally. Earlier in June, Paxos unveiled plans to launch an interest-bearing stablecoin named the Lift Dollar (USDL), which will be overseen by regulatory standards in the Abu Dhabi Global Market (ADGM) and will provide overnight yield on the interest earned from the reserves supporting it.
Headquartered in New York, Paxos issues several regulated stablecoins including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG) under the supervision of the New York Department of Financial Services (NYDFS).
For more details on this and other developments in the cryptocurrency space, refer to Hodler’s Digest from June 23–29, which covers VanEck’s filing for a Solana ETF and updates on Ether’s supply dynamics.