Paxos International, a blockchain and tokenization platform, has secured full regulatory approval from the Monetary Authority of Singapore (MAS).
In Singapore, Paxos’ branch has been authorized as a Major Payments Institution to offer digital payment token services, including its gold-backed stablecoin Pax Gold (PAXG).
This regulatory green light allows Paxos to introduce a stablecoin that complies with MAS’ forthcoming regulatory framework. Notably, Singapore marks the third international market, after the United States and the United Arab Emirates, where Paxos-related entities have been sanctioned to issue stablecoins, as announced on July 1.
The MAS approval stands as a pivotal advancement for Paxos’ ambitions to expand its regulated stablecoin offerings globally, noted Walter Hessert, Paxos’ head of strategy.
In a strategic move, Paxos has selected DBS, the largest bank in Southeast Asia by assets under management, as its principal banking partner. DBS will handle cash management and custody services for the reserves backing Paxos’ stablecoins, per the announcement.
According to Evy Theunis, head of digital assets at DBS Bank, trust and security are critical for fostering broader adoption of stablecoins.
Paxos’ regulatory endorsement in Singapore represents the latest milestone in its worldwide expansion strategy. Earlier in June, Paxos introduced an interest-bearing stablecoin called the Lift Dollar (USDL), regulated in the Abu Dhabi Global Market (ADGM). USDL offers overnight yield on the interest Paxos International generates from the reserves supporting it.
Based in New York, Paxos issues several regulated tokens including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG) under the oversight of the New York Department of Financial Services (NYDFS).
For more insights on recent developments in the cryptocurrency space, including VanEck’s filing for a Solana ETF and Ether’s supply dynamics, explore the latest Hodler’s Digest dated June 23–29.