Stablecoin issuer Paxos has received preliminary approval from the regulatory body of Singapore to establish a new entity that will be responsible for launching a new stablecoin backed by the U.S. dollar.
The Paxos Digital Singapore Pte. Ltd, the name of the newly approved entity, has secured initial consent from the Monetary Authority of Singapore (MAS). The approval means that the freshly authorized entity can provide digital payment token services and issue a USD stablecoin that the MAS will monitor in terms of adhering to their guidelines. Once full approval is gained, Paxos has plans to collaborate with corporate clients to introduce the new stablecoin within the country’s financial market.
Paxos has expressed its gratitude towards the MAS for providing the in-principle approval for the registrations of its new entity. They have also emphasized the importance of fulfilling the requests of non-US consumers for the acquisition of dollars securely and reliably, which is also guarded by the regulations set forth by the country’s monetary authority.
Paxos’ Head of Strategy, Walter Hessert, has stated that the new milestone achieved by the company will enable Paxos to provide opportunities to a wider international use base to take benefits of the services offered by the regulated platform.
Singapore is among the few countries that have been at the forefront of providing the regulatory framework for crypto-based firms to garner more attention and investment regarding projects that are linked with cryptocurrency.
In August of 2023, MAS announced its final stablecoin regulation framework, which was targeted at non-bank-issued tokens tied to the Singapore dollar and other major currencies, including the British pound and the U.S. dollar.
This isn’t the only news related to Paxos, where they have been involved with the issuance of a new stablecoin. On August 7, PayPal launched PYUSD, a USD-backed stablecoin issued by Paxos.
Paxos has been working very hard to improve its image among the regulatory authorities of different countries, especially since the fiasco involving the authorities in the U.S., where the New York Department of Financial Services instructed Paxos to halt issuance, considering the stablecoin, unregistered security.
Paxos clarified that the U.S. dollar and cash equivalents fully back all its stablecoins, and it issues monthly attestations and reserve reports to ensure compliance. However, the company was still forced to halt the issuance of new BUSD tokens, and Binance has also recently announced that it would stop providing support for the existing BUSD currency pairs on its exchange and has urged users to shift them to other currencies to avoid any inconvenience in the future.
