Paxos Secures MAS Approval for Stablecoin Issuance in Singapore

Singapore's MAS grants Paxos digital payment token service license, with DBS Bank as primary banking partner for stablecoin reserves.

Key Insights

  • Paxos has received full approval from Singapore’s MAS to offer digital payment token services and issue stablecoins as a Major Payments Institution.
  • Singapore becomes the third market, after the US and UAE, where Paxos can issue stablecoins.
  • Paxos has partnered with DBS Bank for cash management and custody of stablecoin reserves, reinforcing the importance of trust and security in stablecoin adoption.

SINGAPORE (MarketsXplora) – Blockchain infrastructure provider Paxos has received full approval from the Monetary Authority of Singapore (MAS) to offer digital payment token services as a Major Payments Institution, the company announced on Monday.

The license, granted to Paxos’ Singapore entity, Paxos Digital Singapore Pte. Ltd., allows the firm to issue stablecoins in accordance with MAS’ forthcoming stablecoin framework.

This approval marks Singapore as the third market, alongside the United States and United Arab Emirates, where Paxos and its related entities are authorized to issue stablecoins. The move underscores the company’s global expansion strategy and its commitment to providing regulated, secure stablecoins worldwide.

Walter Hessert, Head of Strategy at Paxos, emphasized the significance of the approval, stating,

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

The development comes as regulatory bodies worldwide grapple with the growing influence of digital assets in the financial ecosystem. Paxos’ successful navigation of MAS’ stringent regulatory requirements demonstrates the viability of stablecoin issuance under prudential oversight when companies prioritize consumer protection.

Read also! MAS Fines Businessman S$70,000 for Insider Trading in GS Holdings shares

DBS Bank Partners with Paxos

In a strategic move to bolster its operations in Singapore, Paxos has selected DBS Bank as its primary banking partner for cash management and the custody of stablecoin reserves. DBS, a leader in digital asset services in Asia, brings extensive experience in the crypto space to the partnership.

Evy Theunis, Head of Digital Assets, Institutional Banking Group at DBS Bank, commented on the collaboration:

“We firmly believe that trust and security are key to wider stablecoin adoption. Having examined all relevant aspects that come with managing reserve assets, stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them.”

The partnership with DBS further solidifies Paxos’ commitment to building secure and regulated financial solutions in the region. It also expands DBS’ involvement in the digital asset ecosystem, an area where the bank has been a pioneer for several years.

Industry experts view this development as a significant step forward for the stablecoin sector in Asia, potentially paving the way for increased adoption of digital assets in traditional finance.

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