Paxos Gains Approval from Singapore to Issue Stablecoins, Partners With DBS Bank
Paxos has received approval from the Monetary Authority of Singapore (MAS) to offer digital payment token services, paving the way for the firm to issue stablecoins compliant with the country's regulatory framework. This approval, granted to Paxos Digital Singapore Pte. Ltd., allows the company to operate as a major payments institution in the region.
Paxos is now authorized to issue stablecoins in the U.S., United Arab Emirates, and Singapore. The firm joins 18 other companies, including Blockchain.com, Circle, and Coinbase, that hold a Major Payment Institution (MPI) license in Singapore. To qualify for an MPI license, firms must meet several criteria, including maintaining a base capital of 250,000 Singapore dollars and having a permanent place of business or a registered office in Singapore.
Walter Hessert, head of strategy at Paxos, emphasized the significance of this milestone. "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.”
In addition to receiving regulatory approval, Paxos announced a new partnership with Singapore-based DBS Bank for cash management and custody of stablecoin reserves. This collaboration marks another step in DBS Bank's extensive involvement in the digital asset ecosystem. Evy Theunis, head of digital assets at DBS Bank's institutional banking group, noted, "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."