Paxos to Launch US Dollar-Backed Stablecoin for Singapore Operations

• Paxos Granted Preliminary License in Singapore for Digital Payment Token Services
• Facilitating Stablecoin Services Under the Payment Services Act
• Addressing International Demand for US Dollars
• Expanding Market and Customer Base
• Paxos' Prior Achievements in Singapore
• Previous Leaps: Paxos Receives Operating License from Singapore Regulator

Paxos Granted Preliminary License in Singapore for Digital Payment Token Services

Paxos, a cryptocurrency brokerage firm, has been granted in-principle approval by the Monetary Authority of Singapore (MAS) to provide digital payment token services in the country. The firm shared this news on Wednesday via official statement.

Facilitating Stablecoin Services Under the Payment Services Act

The approval, while preliminary, permits the new Paxos Digital Singapore Pte. Ltd. entity to operate under the Payment Services Act (PSA) in Singapore, while it awaits final approval. The firm has intentions to collaborate with enterprise clients for the issuance of a US dollar-backed stablecoin upon receiving full authority to conduct business in the city-state.

Addressing International Demand for US Dollars

The leadership at Paxos recognizes the burgeoning global demand for the US dollar, a demand which often proves challenging to meet reliably and securely for consumers outside the United States, especially under regulatory protections. The firm has committed to monthly attestation and reserve reports for its stablecoins, enhancing trust and reliability for its user base.

Expanding Market and Customer Base

The Paxos leadership sees this move as an opportunity to attract and engage new customers in a time of increasing demand for stablecoins. Bernstein, a notable brokerage firm, projects that the stablecoin market will grow from $125 billion to $2.8 trillion within the next five years.

Paxos' Prior Achievements in Singapore

This announcement comes a year after Paxos was first given an operating license in the Southeast Asian nation. This license allowed the firm to provide tokenization, custody, and trade services. This is the same bill being utilized for Wednesday's announcement.

Previous Leaps: Paxos Receives Operating License from Singapore Regulator

Paxos had, in the past, received an operational license from the Singapore Regulator, facilitating the issuance of stablecoins.

Edited by Jonathan Stoker