CRYPTO platform Paxos has received in-principle approval from the Monetary Authority of Singapore (MAS) to offer digital payment token services under its Singapore entity, the company said on Thursday (Nov 16).
Its Singapore arm, Paxos Digital Singapore, will be issuing a new US dollar stablecoin.
The company is also looking to partner enterprise clients to issue the USD-backed stablecoin in Singapore, once it receives full approval from the regulator.
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.
“This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world.”
This adds to the company’s suite of other stablecoins, including its own Pax dollar, as well as the PayPal USD. Paxos used to issue Binance-branded token BUSD, before Binance announced its decision to discontinue support for the coin.
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The company said that all its stablecoins are backed on a 1:1 ratio by the USD and cash equivalents. Like its other tokens, Paxos said it will also issue monthly attestations and reserve reports once the token is launched in Singapore.
This comes after MAS in August revised its stablecoin regulatory framework, which requires stablecoin issuers to segregate customers’ stablecoins, submit independent attestations of their reserves on a monthly basis and maintain par value of their stablecoins at all times, among others.
These measures were introduced to maintain a higher degree of stability within stablecoin issuers, after the collapse of the Terra Luna/USD last year, which led to a contagion effect within the crypto industry.
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