Paxos, a provider of crypto infrastructure, has obtained initial authorization from the regulatory authority of Singapore for an innovative embarking that aims to launch a stablecoin supported by the U.S. dollar.
Paxos announced earlier this week in a statement that preliminary approval for its forthcoming entity, Paxos Digital Singapore Pte. Ltd., had been granted by the Monetary Authority of Singapore (MAS). Authorised to offer digital payment token services, this new company intends to introduce a USD stablecoin in accordance with the proposed stablecoin regulations of the MAS.
Paxos plans to collaborate with enterprise customers in Singapore to deploy the stablecoin once it has received final approval.
Paxos’ Head of Strategy, Walter Hessert, underscored the worldwide periphery’s reliance on the U.S. dollar and the obstacles encountered by non-U.S. consumers in obtaining dollars in a secure and regulatory-compliant manner. According to him, the preliminary authorization from MAS grants Paxos the ability to expand the reach of its regulated platform to a more extensive global clientele.
The comprehensive regulatory framework for stablecoins, which was introduced by the Monetary Authority of Singapore (MAS) on August 15, targeted non-bank issued tokens with a circulation exceeding 5 million Singapore dollars ($3.7 million) and which were pegged to the value of major currencies such as the euro, British pound, and U.S. dollar.
Paxos-issued PYUSD, a stablecoin guaranteed by the USD, was introduced by PayPal on August 7.
Notably, the New York Department of Financial Services instructed Paxos, which was formerly tasked with minting Binance’s defunct BUSD stablecoin, to cease token issuance of the stablecoin after classifying it as an unregistered security.
Paxos has provided clarification that its stablecoins are entirely supported by cash equivalents and the U.S. dollar. The company further underscores its dedication to compliance by publishing monthly attestations and reserve reports.