Paxos, a company specializing in regulated blockchain infrastructure, has announced the launch of Global Dollar (USDG), a stablecoin compliant with Singaporean regulations. The stablecoin’s backing in United States dollars is reserved and managed by DBS Bank.
On October 31, Paxos unveiled USDG as its second localized stablecoin, following the introduction of the interest-bearing Lift Dollar (USDL) stablecoin, which is regulated by the United Arab Emirates, just five months prior.
Facilitating stablecoin innovation through clear regulations
Paxos Digital Singapore, the Singapore branch of Paxos, received approval for USDG from the Monetary Authority of Singapore (MAS) in July. Evy Theunis, the head of digital assets at DBS Bank, elaborated on the rationale behind the collaboration with Paxos:
According to the company, USDG adheres to the MAS’s forthcoming stablecoin framework, established in August 2023. Currently, USDG operates on the Ethereum blockchain, with plans to expand to other blockchains as regulations continue to develop.
Strategies for the global rollout of USDG
In a statement on X, Paxos outlined its intention to collaborate with global cryptocurrency exchanges, wallets, and trading platforms to enhance the accessibility of USDG for both individuals and institutions.
Sygnum Bank, a Swiss cryptocurrency bank, noted that the increasing clarity in regulations is motivating traditional financial institutions to launch their own stablecoins. The bank stated:
USDG is backed 1:1 by the US dollar, represented through dollar deposits, short-term US government securities, and other cash equivalents, ensuring that users can exchange their tokens for fiat currency.
Ronak Daya, Paxos’s head of product, expressed that the partnership with DBS will facilitate the adoption of stablecoins at an enterprise level.
Paxos’s portfolio of digital asset offerings also includes PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).