Stablecoin issuer Paxos has recently introduced a new digital token called the “Global Dollar” (USDG) that complies with the upcoming stablecoin regulations set by the Monetary Authority of Singapore (MAS).
Paxos Digital Singapore, the issuer of USDG, has ensured that the stablecoin is backed 1:1 by the U.S. dollar, with reserves held in high-quality liquid assets like U.S. dollar deposits and short-duration U.S. Government securities. These reserves are managed by DBS Bank, the largest bank in Southeast Asia.
Initially launched on the Ethereum blockchain, USDG will eventually be available on other blockchains as well. This move is part of Paxos’ mission to promote the global adoption of stablecoins by providing secure, regulated, and redeemable assets.
According to Ronak Daya, the head of product at Paxos, there is a growing demand for stablecoins in the business world. However, there are limited options that are both compliant and offer meaningful benefits. USDG aims to address this gap by encouraging enterprise adoption on a global scale, supported by robust regulatory standards and a strategic partnership with DBS Bank.
This launch follows Paxos Digital Singapore’s recent approval from MAS to offer cryptocurrency services in Singapore. This approval marks the company’s entry into its third market, following successful licensing in the United States and the United Arab Emirates.
Paxos, founded in 2012 by Charles Cascarilla and Rich Teo, focuses on providing regulated blockchain infrastructure. The company has received significant funding of nearly $540 million from various investors, including Oak HC/FT, Declaration Partners, and Mithril Capital.
In conclusion, the introduction of USDG by Paxos represents a significant step towards meeting Singapore’s stablecoin regulations while also catering to the increasing demand for compliant and secure digital assets in the global market. With its strong regulatory backing and established partnerships, Paxos is well-positioned to drive the adoption of stablecoins among businesses worldwide.