Paxos, a US-based blockchain and tokenisation infrastructure platform, has received full approval from the Monetary Authority of Singapore (MAS) to establish its presence in Singapore.
The approval, granted to its Singapore entity Paxos Digital Singapore, allows the firm to operate as a major payments institution to offer digital payment token services in Singapore.
It also permits Paxos to issue stablecoins in accordance with the upcoming stablecoin framework of MAS.
The full approval by MAS marks Singapore as the third market, alongside the US and UAE, where Paxos and its affiliated entities are authorised to issue stablecoins.
Paxos strategy head Walter Hessert said: “Stablecoins issued in accordance with standards set by a regulator like MAS – known for its rigorous regulatory standards – represent a significant step towards democratising 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.”
Paxos has additionally chosen DBS Bank, a Singapore-based financial services group, as its primary banking partner for cash management and the custody of stablecoin reserves.
According to Paxos, DBS Bank is an ideal partner as it develops and introduces advanced, secure, and regulated financial solutions.
DBS Bank digital assets, institutional banking group head Evy Theunis said: “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.”
Last month, Paxos announced that its UAE-based affiliate Paxos International introduced a yield-bearing stablecoin called Lift Dollar (USDL) in Argentina. The stablecoin is available in the South American country through Paxos’ distribution partners Ripio, Manteca, Buenbit, and Plus Crypto.
