Paxos Digital Singapore Pte. Ltd, a subsidiary of the blockchain infrastructure firm Paxos, has been granted approval by the Monetary Authority of Singapore (MAS) to operate as a Major Payment Institution for digital payment tokens.
This regulatory approval enables Paxos to issue stablecoins in compliance with Singapore’s forthcoming stablecoin framework.
With this authorization, Singapore joins the United States and United Arab Emirates as jurisdictions where Paxos entities are permitted to issue stablecoins.
“Receiving approval from MAS is a crucial step for Paxos and our global enterprise partners to provide regulated access to US dollar-based stablecoins for users worldwide.” Walter Hessert, Head of Strategy at Paxos, said in a statementÂ
In addition, Paxos has also announced a partnership with DBS Bank for cash management and custody of stablecoin reserves. DBS, Southeast Asia’s largest bank by assets, has been actively involved in the digital asset space for several years.
Head of Digital Assets at DBS Bank’s Institutional Banking Group, Evy Theunis commented on the collaboration: “This partnership further extends DBS’ involvement across the digital asset ecosystem, where we have been a pioneer for several years.”
This development is expected to contribute to wider acceptance of regulated stablecoins and could shape international standards for regulating digital currencies
Also Read: Circle Secures First EU Stablecoin License Under MiCA
