Yesterday Paxos announced its subsidiary Paxos Digital Singapore received the go ahead from the Monetary Authority of Singapore (MAS) to issue stablecoins. Technically MAS allowed it to offer digital payment token services as a major payment institution. Additionally, DBS Bank will provide custody for the stablecoin’s reserves.
“Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them,” said Evy Theunis, Head of Digital Assets, Institutional Banking Group at DBS Bank. “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.”
Paxos was first awarded a Singapore major payment institution license in 2022. However, it subsequently setup a new ring-fenced entity which was awarded in principle approval by MAS in November.
The company is known for the Paxos dollar, as the issuer of PayPal’s PYUSD stablecoin and the former issuer of Binance USD.
Paxos is also licensed in the Abu Dhabi Global Market (ADGM). Last month it issued a yield bearing stablecoin which is initially targeting a customer base in Argentina. With the devaluation of the Argentina peso, it could provide a stable place to park funds and earn a return. Doubtless the Singapore stablecoin launch will be equally innovative.
