Paxos Collaborates with DBS Bank to Introduce USDG Stablecoin Backed by USD

Regulated blockchain infrastructure company Paxos introduced Global Dollar (USDG), a Singapore-compliant stablecoin whose United States dollar backings are reserved and managed by DBS Bank.
On Oct. 31, Paxos announced the launch of its second localized stablecoin offering, USDG, in Singapore five months after establishing the United Arab Emirates-regulated interest-bearing Lift Dollar (USDL) stablecoin.


Supporting stablecoin innovation through regulatory clarity
Paxos Digital Singapore, the Singapore wing of Paxos,gained approval for USDG in Julyfrom the Monetary Authority of Singapore (MAS). At the time, Evy Theunis, head of digital assets at DBS Bank, explained the reasoning behind partnering with the crypto company:
According to Paxos, USDG complies withMAS’ upcoming stablecoin frameworkestablished in August 2023. As a result, USDG is currently available on the Ethereum blockchain and will be made available on other chains as regulations evolve.


Plans for global distribution of USDG
Paxossaidin a statement on X:
The company plans to partner with global crypto exchanges, wallets and trading platforms to make USDG available to individuals and institutions.
Sygnum Bank, a Swiss crypto bank,highlightedthat increasing regulatory clarity is encouraging traditional financial institutions to launch stablecoins. It said:
USDG is backed 1:1 with the US dollar in the form of dollar deposits, short-duration US government securities and other cash equivalents, ensuring that users can redeem their tokens for fiat.
Ronak Daya, head of product at Paxos, said the DBS partnership will enable enterprise-level stablecoin adoption.
Other digital asset offerings by Paxos include PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).