LUCKNOW (CoinChapter.com) — Paxos Digital Singapore Pte. Ltd., a branch of Paxos, will launch a US dollar-backed stablecoin in Singapore. On Nov. 15, the company announced that it had received an In-Principle Approval from the Monetary Authority of Singapore (MAS) — a green signal to issue the stablecoin.
Once fully approved, the new entity can issue stablecoins in the country by partnering with enterprise clients.
Walter Hessert, Paxos Head of Strategy, cited global demand for the US dollar as their primary reason behind the Singapore expansion, noting that it’s difficult for non-US clients to access the greenback safely, reliably, and under proper regulatory compliance.
“This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world.”he added.
However, Paxos has not announced the name of this stablecoin or any specific information about it yet.
How Did Paxos Stablecoin in Singapore Become a Reality?
The MAS finalized its stablecoin regulatory framework on Aug. 15. It targets non-bank issued tokens tied to the value of the Singapore dollar or G10 currencies whose circulation is more than 5 million Singapore dollars ($3.7 million).
On Aug. 7 this year, Paxos issued PYUSD — a USD-backed stablecoin launched by PayPal.
Paxos’s History and Regulatory Compliance
Earlier, Paxos had partnered with Binance to issue BUSD stablecoin. However, It had to cease minting BUSD after the New York Department of Financial Services declared stablecoin an unregistered security.
Despite past challenges, Paxos clarified that the dollar and cash equivalents completely back all the stablecoin it mints. Additionally, it issues monthly attestations and reserve reports to ensure compliance with regulatory standards.
Paxos Digital Singapore Pte. Ltd. is the second entity of Paxos in Singapore. The first entity offers digital payment token services after receiving a license under the country’s Payment Services Act 2019. Paxos was the first US-based crypto firm operating in Singapore.