Paxos, a forefront player in the realm of regulated blockchain and tokenization infrastructure, has achieved a significant milestone by obtaining in-principle approval from the Monetary Authority of Singapore (MAS).
As per the announcement, this approval is granted for Paxos’ recently established Singapore entity dubbed Paxos Singapore Pte.Ltd, paving the way for the provision of digital payment token services. Under the umbrella of Paxos Digital Singapore, a groundbreaking initiative is set to unfold-the issuance of a new US dollar stablecoin.
Paxos to Boost Stablecoin with Its New Initiative
Interestingly, what adds to the significance of this development is MAS’s acknowledgment of the stablecoin’s substantive compliance with its proposed stablecoin regulatory framework. Remarkably, this recognition preceded the legislative framework’s formal enforcement, underlining the forward-thinking approach adopted by Paxos.
Also, the stablecoin initiative reflects Paxos’ strategic approach to the evolving landscape of cryptocurrency and blockchain technology. By backing the stablecoin with the US dollar, the cryptocurrency infrastructure firm aims to enhance stability and foster trust in the digital asset, aligning with established fiat currencies.
Furthermore, Paxos mentioned that it will partner with several enterprises to issue a US dollar-backed stablecoin, once it gets full approval.
MAS Approves Paxos for Crypto Services Offerings
Recall that last year, the stablecoin issuer announced that it had finally got approval from MAS for offering crypto services to local companies. Paxos also mentioned that the regulatory approval will help support its partners in expanding businesses in the Asian region.
Meanwhile, Crypto.com joined forces with PayPal and Paxos to establish itself as the preferred platform for PayPal USD.
Singapore Becoming a Major Hub for Cryptocurrency
Singapore is known for its established global financial center, making the nation the “Silicon Valley of Asia.” Over the past years, many companies dealing in digital assets have received approval from the nation’s leading financial authority MAS.
London-based crypto exchange Blockchain.com, crypto exchange giant Coinbase, Crypto.com, Genesis, and Sparrow have been given a platform to trade cryptocurrencies and provide their services in the region. Also, Singapore has granted permission to SBI Digital Markets Pte.Ltd and many others to expand their crypto service offerings in the city-state.