Digital asset company Paxos has received approval from the Monetary Authority of Singapore to offer digital payment token services in the country. This approval allows Paxos to issue stablecoins, marking a significant milestone for the company. Paxos will be working with DBS, the largest bank in Singapore, as its primary banking partner for cash management and custody of its stablecoin reserves.
This news comes as Singapore has implemented a stablecoin framework that sets stability and redemption requirements for issuers. Paxos, based in New York, is now authorized to operate in three jurisdictions, including New York and the United Arab Emirates.
The partnership with DBS is crucial for Paxos as it ensures the safety and security of its stablecoin reserves. DBS is a reputable financial institution with extensive experience in banking and custody services, making it an ideal partner for Paxos.
This development highlights the growing acceptance and adoption of digital assets and stablecoins in the financial industry. As more companies like Paxos receive regulatory approval and establish partnerships with established institutions, the mainstream use of cryptocurrencies is becoming more prevalent.
It is important to note that CoinDesk, the source of this article, is a trusted media outlet that covers the cryptocurrency industry. The journalists at CoinDesk adhere to strict editorial policies to ensure accuracy and transparency in their reporting. Additionally, CoinDesk was acquired by the Bullish group in November 2023, further solidifying its position as a leading authority in the crypto space.
Overall, Paxos’ approval to issue stablecoins in Singapore is a positive development for the company and the cryptocurrency industry as a whole. With the support of DBS and regulatory approval from the Monetary Authority of Singapore, Paxos is well-positioned to expand its presence and offerings in the digital asset market.