Paxos International, a blockchain and tokenization platform, has achieved full regulatory approval from the Monetary Authority of Singapore (MAS).
Paxos’ Singapore branch, the issuer of the gold-backed stablecoin Pax Gold (PAXG), now has authorization to provide digital payment token services as a Major Payments Institution.
This regulatory green light allows Paxos to launch a stablecoin in alignment with MAS’ forthcoming regulatory framework.
This approval signifies Paxos’ entry into its third international market, following the United States and the United Arab Emirates, where Paxos-affiliated entities are permitted to issue stablecoins.
This milestone was highlighted in a July 1 announcement.
Walter Hessert, head of strategy at Paxos, emphasized the importance of this approval for their global stablecoin offerings: “Stablecoins issued in accordance with standards set by a regulator like MAS — known for its rigorous regulatory standards — represent a significant step toward democratizing access to commerce and financial services.”
In a related development, DBS, Southeast Asia’s largest bank by assets under management, will serve as Paxos’ primary banking partner.
According to the announcement, DBS will handle cash management and custody of the stablecoin reserves.
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Evy Theunis, head of digital assets at DBS Bank, underscored the importance of trust and security in stablecoin adoption: “Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them.
This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem.”
This regulatory approval in Singapore marks another significant step in Paxos’ global expansion efforts. Earlier, in June, Paxos announced the launch of an interest-bearing stablecoin called the Lift Dollar (USDL).
This stablecoin, regulated by the Abu Dhabi Global Market (ADGM), will pay overnight yield on the interest earned from the reserves backing it.
Based in New York, Paxos also mints PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG) under the supervision of the New York Department of Financial Services (NYDFS).
This recent regulatory success in Singapore demonstrates Paxos’ commitment to expanding its regulated stablecoin offerings worldwide, further establishing its presence in key financial markets.
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