Paxos Gains Preliminary Approval from Abu Dhabi's FSRA for Stablecoin Issuance and Digital Asset Operations

November 29, 2023 - Paxos, the provider of regulated blockchain and tokenization infrastructure, has obtained in-principle approvals (IPAs) from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM). These approvals grant Paxos the requisite Financial Services Permissions to issue stablecoins backed by the US dollar and other currencies. In addition, Paxos is poised to offer cryptocurrency brokerage and custody services through two entities regulated within the ADGM framework. With full regulatory approval, Paxos aims to extend the reach of its regulated USD-backed stablecoins on a global scale.

Paxos says that this move signifies a major stride in stablecoin adoption and utility, reflecting Paxos' dedication to transparency, responsibility, and adherence to stringent regulatory standards. The company's proactive approach in seeking regulatory oversight underscores its commitment to issuing tokens under the watchful eye of established financial regulators, democratising financial services access.

Paxos is steadfast in its pursuit of international expansion within regulated environments and actively engages with regulators globally to shape the digital asset regulatory landscape. Upholding stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, Paxos aligns its operations with the high standards set by leading financial jurisdictions like the United States and Singapore. Operations in the ADGM will be subject to the FSRA's comprehensive regulatory oversight, further cementing Paxos' status as one of the most rigorously regulated blockchain platforms globally.

Walter Hessert, Head of Strategy at Paxos, commented on the milestone, highlighting the transformative impact of blockchain technology on the global financial ecosystem. He emphasised Paxos' commitment to offering secure and trustworthy digital asset services, reinforced by the recent IPAs from the FSRA and the Monetary Authority of Singapore. Paxos' unique approach of expanding within regulated frameworks positions it as a trusted and innovative partner for global enterprises.

Paxos leverages blockchain technology to democratise the financial system, aiming to provide broader access and empowerment. With a vision to build a more inclusive financial future, Paxos leads the way in digital asset innovation, maintaining its commitment to transparency and reliability.

All Paxos stablecoins are fully backed by the US Dollar and cash equivalents on a 1:1 basis, ensuring stability and security. Consistent with its other tokens, Paxos will continue to provide monthly attestations and reserve reports, offering transparency to all token holders. For more information on Paxos' regulatory compliance and transparency, visit Paxos Regulation and Transparency.