Key takeaways:
- The MAS has granted full regulatory certification for Paxos International’s blockchain and tokenization platform.
- With the regulatory license, Paxos can now introduce a stablecoin that complies with the impending regulatory framework of MAS.
The Monetary Authority of Singapore (MAS) has granted full regulatory certification for Paxos International’s blockchain and tokenization platform.
The authority to provide digital payment token services as a Major Payments Institution has been given to the Singapore branch of Paxos, the company that issues the stablecoin Pax Gold (PAXG), which is backed by gold.
With the regulatory license, Paxos can now introduce a stablecoin that complies with the impending regulatory framework of MAS.
According to a July 1 release, the permission becomes the third international market where Paxos-related firms are permitted to create stablecoins, after the United States and the United Arab Emirates.
According to Walter Hessert, head of strategy at Paxos, the regulatory clearance of MAS was a major step forward for Paxos’s attempts to expand their regulated stablecoin product globally:
“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.”
DBS, the biggest bank in Southeast Asia in terms of assets under management, will serve as Paxos’ principal banking partner.
According to the release, Paxos will rely on DBS for cash management and stablecoin reserve custody. Wider adoption of stablecoins depends on trust and security, according to DBS Bank’s head of digital assets, Evy Theunis:
“Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them.”
The most recent achievement in Paxos’ efforts to expand internationally is the regulatory license in Singapore.
The Lift Dollar (USDL), an interest-bearing stablecoin that will be regulated on the Abu Dhabi Global Market (ADGM) and pay overnight yield on the interest Paxos International generates on the reserves backing it, was unveiled by Paxos at the beginning of June.
Based in New York, Paxos mints PayPal USD, Pax Dollar (USDP), and Pax Gold (PAXG) under the supervision of the New York Department of Financial Services (NYDFS).
