Paxos has received full approval from the Monetary Authority of Singapore (MAS) to provide digital payment token services, marking a significant step in its global stablecoin initiatives. This regulatory nod allows Paxos to issue stablecoins that comply with MAS's upcoming regulatory framework.
DBS Bank has been named as the primary banking partner for Paxos following the approval by MAS. As Southeast Asia's largest bank, DBS Bank will manage cash operations and custody of stablecoin reserves. Evy Theunis, head of digital assets at DBS Bank, expressed enthusiasm about supporting Paxos in Singapore, emphasizing the importance of trust and security for the broader adoption of stablecoins.
Paxos, known for its blockchain and tokenization infrastructure, has attained the status of a Major Payments Institution in Singapore through this authorization. Paxos Digital Singapore will now legally issue stablecoins in alignment with MAS's forthcoming stablecoin standards. The company highlighted Singapore's strategic importance alongside the United States and United Arab Emirates, where similar regulatory approvals are in place.
In recent developments, Paxos introduced a new yield-bearing stablecoin called lift dollar (USDL). Alongside its own Ethereum-based stablecoin paxos dollar (USDP) and the gold-backed token PAXG, Paxos also issues Paypal’s stablecoin PYUSD. Previously, Paxos issued binance dollar (BUSD), although it has discontinued minting new BUSD. Additionally, recent reports indicated that Paxos has downsized its workforce, laying off 65 employees in mid-June.
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