Paxos Gains Initial Approval for Launch in Singapore

Paxos has its aim at the Singapore market. The Monetary Authority of Singapore (MAS) has given preliminary approval to Paxos Digital Singapore Pte. Ltd, a new subsidiary of Paxos. This step is crucial for the company’s plan to issue a U.S. dollar-backed stablecoin in Singapore, adhering to the nation’s upcoming stablecoin regulations.

What you need to know

• Paxos Digital Singapore Pte. Ltd, a new subsidiary of Paxos, received preliminary approval from the Monetary Authority of Singapore (MAS) to issue a U.S. dollar-backed stablecoin.
• The stablecoin initiative aligns with Singapore’s new regulations for non-bank issued tokens pegged to major currencies, applicable when circulation exceeds 5 million Singapore dollars (about $3.7 million).
• Paxos has previously issued PayPal’s USD-backed stablecoin, PYUSD, demonstrating its capability and experience in the stablecoin market.

Walter Hessert, Paxos’ head of strategy, highlighted the global necessity for accessible U.S. dollars. “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,” he said. This new stablecoin aims to fulfill this need under regulated conditions.

Prior to this development, the globally recognized crypto infrastructure firm had already made its mark in the stablecoin domain. It was the issuer behind PayPal’s USD-backed stablecoin, PYUSD, which was launched on Aug. 7. The success of PYUSD underscores Paxos’s expertise and capability in managing stablecoins.

Paxos is committed to transparency and regulatory compliance, ensuring that its stablecoins are fully backed by U.S. dollars and cash equivalents. The firm regularly publishes monthly attestations and reserve reports to maintain and demonstrate compliance.

This initiative aligns with MAS’s recent regulatory updates. On Aug. 15, MAS introduced a comprehensive framework to regulate stablecoins, focusing on tokens not issued by banks but pegged to major currencies like the euro, British pound, U.S. dollar, and the Singapore dollar. The regulation becomes applicable when such tokens have a circulation exceeding 5 million Singapore dollars (about $3.7 million).

Upon receiving complete approval from MAS, Paxos plans to partner with enterprise clients in Singapore to introduce the stablecoin. This move signifies Paxos’ commitment to expanding its regulated platform to a broader global audience, leveraging Singapore’s progressive regulatory environment.