Paxos, a cryptocurrency brokerage company, announced on Wednesday that it has obtained preliminary regulatory approval to provide digital payment token services in Singapore.
In an announcement on November 15, Paxos stated that they had received initial approval from the Monetary Authority of Singapore (MAS) for their new entity, Paxos Digital Singapore Pte. Ltd. This new company is set to provide digital payment services and intends to issue a USD stablecoin compliant with MAS’s proposed stablecoin regulations.
Upon receiving full approval, Paxos plans to collaborate with business clients to issue the stablecoin in Singapore. Walter Hessert, Paxos’ Head of Strategy, shared, “The global demand for the US dollar has never been stronger, but it remains challenging for consumers outside the US to obtain dollars safely, reliably, and under regulatory protection.” He emphasized that “This preliminary approval from MAS will allow Paxos to bring its regulated platform to users worldwide.”
On August 15, MAS announced the final legal framework for managing stablecoins, primarily targeting non-bank issued coins linked to the value of the Singapore dollar or G10 currencies such as the euro, British pound, and US dollar, with a total circulation value exceeding SGD 5 million (equivalent to USD 3.7 million).
On August 7, PayPal introduced their stablecoin, PYUSD, backed by the US dollar and issued by Paxos. Paxos had previously issued Binance’s BUSD stablecoin but had to halt token issuance after the New York Department of Financial Services declared it an unregistered security.