Paxos gains approval for Singapore stablecoin launch with DBS partnership

Paxos International blockchain and tokenization platform has received full regulatory approval from the Monetary Authority of Singapore (MAS).

The Singapore wing of Paxos, the issuer of the gold-backed stablecoin Pax Gold (PAXG), has received approval to offer digital payment token services as a Major Payments Institutions.

The regulatory approval enables Paxos to launch a stablecoin in line with MAS’ upcoming regulatory framework.

The approval marks the third international market, following the United States and the United Arab Emirates, where Paxos-related entities are authorized to issue stablecoins, according to a July 1 announcement.

MAS’ regulatory approval was a significant step for Paxos’ efforts to expand their regulated stablecoin offering worldwide, wrote Walter Hessert, head of strategy at Paxos:

“Stablecoins issued in accordance with standards set by a regulator like MAS — known for its rigorous regulatory standards — represent a significant step toward democratizing access to commerce and financial services.”

Paxos chooses DBS as its primary banking partner

DBS, Southeast Asia’s largest bank by assets under management, will be Paxos’ primary banking partner.

Paxos will rely on DBS for cash management and the custody of the stablecoin reserves, according to the announcement.

Trust and security are key for wider stablecoin adoption, according to Evy Theunis, head of digital assets at DBS Bank:

“Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem...”

Paxos continues global push

The regulatory approval in Singapore represents the latest milestone in Paxos’ global expansion efforts.

At the beginning of June, Paxos announced the issuance of an interest-bearing stablecoin called the Lift Dollar (USDL), which will be regulated in the Abu Dhabi Global Market (ADGM) and pay overnight yield on the interest Paxos International earns on the reserves backing it.

New York-based Paxos mints PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG) under regulation by the New York Department of Financial Services (NYDFS).