On November 15, Paxos, a blockchain-based fintech firm, received In-Principle Approval (IPA) from the Monetary Authority of Singapore (MAS) for its newly established entity, Paxos Digital Singapore Pte. Ltd.
The in-principle approval, granted under the MAS’ Payments Services Act (PSA), allows Paxos Digital Singapore Pte. Ltd. to offer digital payment token services and prepare for issuing USD-backed stablecoins in Singapore.
Upon securing MAS approval, Paxos aims to collaborate with enterprise clients to launch its USD stablecoin in Singapore.
Walter Hessert, Paxos Head of Strategy, said, “Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably, and under regulatory protections.”
Paxos’ US dollar stablecoin will provide businesses and individuals in Singapore with a safe and reliable way to access and use US dollar-backed stablecoins.
Walter highlighted, “This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users worldwide. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”
Paxos is a blockchain infrastructure and tokenization platform regulated by the New York State Department of Financial Services (NYDFS) in the US and the MAS in Singapore. In 2022, it became the first US-based blockchain infrastructure platform to receive a licence from the MAS to offer digital payment token services under the Payment Services Act 2019.
The MAS has acknowledged that Paxos Digital Singapore’s new US dollar stablecoin aligns with their proposed stablecoin regulatory framework. It is the first instance of a US dollar stablecoin platform, compliant with MAS’ upcoming stablecoin framework expanding into Asia.
The MAS announced its stablecoin regulatory framework on Aug 15 this year. It outlines requirements for stablecoin issuers, such as redemption timelines, disclosures, reserve management, and capital requirements.
The in-principle approval of Paxos’ USD stablecoin in Singapore marks a step forward for Paxos’ expansion into Asia. It highlights the growing regulatory acceptance of stablecoins in the region. At the same time, it paves the way for further adoption of stablecoins in the region.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash