Initial sanction has been granted for a new local Paxos entity to issue the USD-backed token by Singapore’s stablecoin regulations.
The regulatory authority in Singapore has granted preliminary sanction to Paxos, a crypto infrastructure firm, for a new entity devising strategies to introduce a stablecoin backed by the U.S. dollar.
Paxos announced in a statement dated November 15 that the Monetary Authority of Singapore (MAS) has granted preliminary approval to its new entity, Paxos Digital Singapore Pte. Ltd. In addition to providing digital payment token services.
The new company intends to issue a USD stablecoin that has been authorized per the MAS’s proposed stablecoin regulations. Paxos stated that it will be able to collaborate with enterprise customers in Singapore to issue the stablecoin once it has obtained final approval.
“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,” stated, Paxos head of strategy Walter Hessert. “This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world.”
MAS published its final framework for regulating stablecoins on August 15. The framework specifically targets non-bank issued tokens pegged to the value of the Singapore dollar ($3.7 million).
@MAS_sg has announced the features of a new regulatory framework that seeks to ensure a high degree of value stability for #stablecoins regulated in #Singapore. https://t.co/j12QambGIJ pic.twitter.com/LBUoOGY16P
— MAS (@MAS_sg) August 15, 2023PayPal introduced PYUSD, a USD-backed stablecoin issued by Paxos, on August 7. Paxos previously produced the defunct BUSD stablecoin for Binance; however, the New York Department of Financial Services halted the token’s issuance after the agency’s determination that the stablecoin constituted an unregistered security.
Additionally, Paxos clarified further that its stablecoins are entirely supported by U.S. dollars and cash equivalents. To ensure compliance, the company issues monthly attestations and reserve reports.
