Paxos secures preliminary license for crypto services in Singapore

November 16, 2023 01:03 AM PST | By Invezz

Paxos secures preliminary license for crypto services in Singapore — Image source: Invezz

Paxos to introduce a USD-backed stablecoin

Besides securing the license, Paxos has also announced plans to introduce a USD-backed stablecoin, aligning with MAS’ proposed stablecoin regulatory framework introduced in August aiming to ensure robust price stability for regulated stablecoins in Singapore.

Only entities satisfying the stringent requirements of the framework are eligible to apply for MAS-regulated stablecoin approval.

Paxos affirms its commitment to issuing tokens subject to oversight by prudential regulators, coupled with strict adherence to anti-money laundering (AML) and know-your-customer (KYC) standards in jurisdictions such as Singapore.

Walter Hessert, Paxos Head of Strategy, emphasized the importance of this preliminary approval, stating, “There is a strong global demand for the US dollar, but it is difficult for those outside the US to access it safely and under proper regulations.” Paxos aims to address this demand by launching a stablecoin with a 1:1 backing by the US Dollar, ensuring stability in the volatile cryptocurrency market. The company plans to collaborate with enterprise clients for stablecoin issuance in Singapore upon receiving full regulatory approval.

Capitalizing on stablecoin’s market growth

This move by Paxos aligns with the growing interest in stablecoins, digital currencies tethered to stable assets such as the US dollar. Industry experts predict substantial growth in the stablecoin market, projecting an increase from $125 billion to $2.8 trillion over the next five years.

Paxos’ strategic expansion into stablecoin offerings follows its operating license from MAS a year ago, allowing the firm to provide tokenization and custody services. This recent preliminary license signifies Paxos’ continued commitment to navigating global markets within regulated frameworks and collaborating with regulators to shape digital asset rules.

The post Paxos secures preliminary license for crypto services in Singapore appeared first on Invezz

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