Paxos has received approval from Singapore’s central bank to issue stablecoins, giving its global cryptocurrency business and partnership with DBS Bank a major boost.
Paxos Digital Singapore Pte. LTD., a major player in the cryptocurrency sector, recently received approval from the Monetary Authority of Singapore (MAS) to offer digital payment tokens. This important approval enables Paxos to launch stablecoins that comply with Singapore regulations, marking a significant expansion of their global operations.
Singapore approves Paxos for digital payments
MAS has granted Paxos Major Payment Institution status, confirming the company’s robust financial foundation and regulatory compliance. With this approval, Paxos joins a select group of 19 authorized entities in Singapore. This development is expected to increase the availability of US dollars via stablecoins to a global audience.
Paxos’ expansion into Singapore reflects a growing trend of cryptocurrency integration into traditional financial services. Paxos is already authorized to issue stablecoins in the US and the UAE, underscoring its strong presence in the digital finance sector. The partnership with Singapore-based DBS Bank will further support its cash management needs and custody of stablecoin reserves.
DBS leads in the integration of banking and crypto
DBS Bank, a pioneer in the digital asset ecosystem, has embraced its partnership with Paxos to enhance its suite of services in the cryptocurrency sector. Since launching a fiat-to-crypto exchange in 2020, DBS has been at the forefront of integrating digital currencies within traditional banking frameworks. Their continued commitment is highlighted by innovative projects, including a venture into the metaverse with gaming platform Sandbox.
This partnership expands DBS’s service offerings and strengthens its position as an innovator in the rapidly evolving world of digital assets. Through its partnership with Paxos, DBS aims to enhance its digital transaction and service offerings by leveraging the stability and reliability of regulated stablecoins.
Despite recent regulatory and partnership successes, Paxos has also faced challenges. The company recently announced a reduction in staff, a strategic move to improve efficiency, particularly in tokenization and stablecoin projects. CEO Charles Cascarilla emphasized Paxos’ strong financial position in an internal email, with over $500 million on its balance sheet.
Source: https://cryptobenelux.com/2024/07/03/paxos-ontvangt-toestemming-van-singapore-om-stablecoins-uit-te-geven/
