Paxos, a blockchain infrastructure platform, has introduced a new stablecoin pegged to the USD in Singapore following the acquisition of in-principle approval from the Monetary Authority of Singapore [MAS]. The company’s latest stablecoin aligns with MAS’ stablecoin regulatory framework, unveiled on August 15, outlining essential criteria for issuers such as value stability, capital, and redemption at par. Notably, Paxos stands as the sole entity to receive MAS approval for this initiative, emphasizing its unique position in the market.
While specific details about the new stablecoin, including its name, remain undisclosed, the firm confirmed its USD backing and issuance through the company’s recently established entity in Singapore. In 2022, it achieved a significant milestone by becoming the first U.S.-based blockchain infrastructure platform authorized by MAS to provide digital payment token services under the Payment Services Act 2019.
Walter Hessert, Paxos Head of Strategy, highlighted the growing global demand for the US dollar and the challenges faced by consumers outside the U.S. in obtaining dollars securely and in compliance with regulatory standards. MAS’ in-principle approval is seen as a pivotal step for the firm, enabling the company to extend its regulated platform to a broader international user base.
Hessert emphasized Paxos’s commitment to maintaining the highest standards of compliance and oversight, attracting global enterprises seeking stablecoin solutions aligned with regulatory standards to power their businesses and meet customer demands.
Paxos’ Global Alliances
Paxos has established partnerships with leading global enterprises to tokenize, custody, trade, and settle assets. Its blockchain solutions are employed by prominent institutions such as PayPal, Interactive Brokers, Mastercard, Mercado Libre, Nubank, Bank of America, and Societe Generale. The company is recognized as the issuer of various regulated digital assets, including PayPal USD [PYUSD], Pax Dollar [USDP], and Pax Gold [PAXG].
Regulated by the New York Department of Financial Services [NYDFS] in the U.S. and the MAS in Singapore, Paxos has garnered substantial funding, surpassing $540 million from key investors like Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital, and PayPal Ventures. With a global presence, including offices in New York, London, and Singapore, the crypto firm adopts a comprehensive approach to modernizing the financial system.