In August 2023, the Monetary Authority of Singapore (MAS) finalised its stablecoin regulatory framework, facilitating the use and development of the digital assets in the country. Almost a year later, Paxos, the regulated blockchain and tokenisation infrastructure platform, is looking to expand into the pro-stablecoin region.
Paxos has received approval from MAS for its Singapore entity, Paxos Digital Singapore Pte. Ltd. to offer digital payment token services as a Major Payments Institution. The approval enables Paxos to issue stablecoins in line with MAS’ upcoming stablecoin framework.
With the approval, Singapore becomes the third market, alongside the US and United Arab Emirates, that Paxos and its related entities are authorised to issue stablecoins. This showcases its commitment to expanding access to regulated, secure stablecoins worldwide. It also highlights how stablecoin issuance and operation under prudential regulatory oversight is possible when a company is committed to protecting consumers.
Walter Hessert, head of strategy at Paxos, said: “Stablecoins issued in accordance with standards set by a regulator like MAS – known for its rigorous regulatory standards – represent a significant step towards democratising access to commerce and financial services. Receiving approval from MAS is an important step for Paxos and our global enterprise partners to safely offer access to US dollars to more users around the world.”
Selecting DBS Bank
One important aspect that provides users confidence in a stablecoin is having a trusted institutional-grade partner. In this regard, Paxos has selected DBS Bank as its primary banking partner for cash management and the custody of stablecoin reserves.
Evy Theunis, head of digital assets, institutional banking group at DBS Bank, said: “We are pleased to support Paxos’ new chapter in Singapore. We firmly believe that trust and security are key to wider stablecoin adoption. Having examined all relevant aspects that come with managing reserve assets, stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now.”
Receiving full approval from MAS reinforces Paxos’s commitment to comply within regulated frameworks as it expands products and services to global markets. This milestone showcases how Paxos is a comprehensively regulated blockchain platform, meeting the highest operating standards in New York, United Arab Emirates’ Abu Dhabi Global Market and Singapore.
