Paxos International, a blockchain and tokenization platform, has secured full regulatory approval from the Monetary Authority of Singapore (MAS).
Paxos’ Singapore arm, known for issuing the gold-backed stablecoin Pax Gold (PAXG), has been authorized to provide digital payment token services as a Major Payment Institution. This regulatory green light allows Paxos to introduce a stablecoin aligned with MAS’ forthcoming regulatory framework.
This approval marks Paxos’ third international market where its entities are permitted to issue stablecoins, following earlier approvals in the United States and the United Arab Emirates. The announcement came on July 1.
Walter Hessert, Paxos’ head of strategy, highlighted MAS’ approval as a pivotal advancement in Paxos’ global strategy to expand its regulated stablecoin offerings worldwide.
DBS, the largest bank in Southeast Asia by assets under management, has been selected as Paxos’ primary banking partner. DBS will manage cash operations and custody the reserves backing the stablecoin, underscoring the importance of trust and security in fostering broader adoption of stablecoins, according to Evy Theunis, DBS Bank’s head of digital assets.
Paxos’ regulatory endorsement in Singapore signifies a significant milestone in its ongoing global expansion initiatives. In early June, Paxos also announced the launch of an interest-bearing stablecoin named the Lift Dollar (USDL), which will be regulated in the Abu Dhabi Global Market (ADGM) and offer an overnight yield based on the interest earned on its reserves.
Based in New York, Paxos issues regulated tokens such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG) under the supervision of the New York Department of Financial Services (NYDFS).