Paxos, a company specializing in regulated blockchain infrastructure, has launched the Global Dollar (USDG), a stablecoin compliant with Singaporean regulations. The backing for USDG, which is pegged to the United States dollar, is held and managed by DBS Bank.
On October 31, Paxos unveiled its second localized stablecoin, USDG, in Singapore, following the introduction of the interest-bearing Lift Dollar (USDL) in the United Arab Emirates five months earlier.
Promoting Stablecoin Innovation Through Regulatory Clarity
Paxos Digital Singapore, the local branch of Paxos, received approval for USDG from the Monetary Authority of Singapore (MAS) in July. Evy Theunis, the head of digital assets at DBS Bank, elaborated on the collaboration with Paxos, emphasizing the benefits of this partnership.
Paxos asserts that USDG aligns with the forthcoming stablecoin framework established by the MAS in August 2023. Currently, USDG operates on the Ethereum blockchain, with plans to expand to additional blockchains as regulatory conditions develop.
Aiming for Global Distribution of USDG
In a statement shared on X, Paxos expressed its intention to collaborate with international cryptocurrency exchanges, wallets, and trading platforms to broaden the availability of USDG for both individuals and institutions.
Sygnum Bank, a Swiss cryptocurrency bank, noted that the growing clarity in regulations is motivating traditional financial institutions to venture into stablecoin issuance. They stated that USDG is fully backed 1:1 by US dollars, which are held in the form of dollar deposits, short-term US government securities, and other cash equivalents, ensuring users can redeem their tokens for fiat currency.
Ronak Daya, Paxos’ head of product, mentioned that the partnership with DBS is set to facilitate the adoption of stablecoins at an enterprise level.
Paxos also offers a range of other digital asset products, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).