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Paxos, a regulated blockchain and tokenization infrastructure platform, has received approval from the Monetary Authority of Singapore (MAS) for its Singapore entity, Paxos Digital Singapore Pte. Ltd., to offer digital payment token services as a Major Payments Institution. This approval allows Paxos to issue stablecoins in accordance with MAS' upcoming stablecoin framework.
Singapore now joins the United States and United Arab Emirates as markets where Paxos and its related entities are authorized to issue stablecoins.
Walter Hessert, Head of Strategy at Paxos, stated: "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. Receiving approval from MAS is an important step for Paxos and our global enterprise partners to safely offer access to US dollars to more users around the world."
To enhance user confidence in its stablecoin offerings, Paxos has selected DBS Bank as its primary banking partner for cash management and custody of stablecoin reserves. DBS, Southeast Asia's largest bank by assets, has been recognized for its safety and innovation in banking.
Evy Theunis, Head of Digital Assets, Institutional Banking Group at DBS Bank, commented: "We are pleased to support Paxos' new chapter in Singapore. 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. This partnership further expands DBS' wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now."
The approval from MAS underscores Paxos's commitment to regulatory compliance as it expands its products and services globally. This development adds Singapore to the list of jurisdictions where Paxos operates under regulatory frameworks, alongside New York and the United Arab Emirates.
