Paxos, a cryptocurrency infrastructure company, has received preliminary approval from the Monetary Authority of Singapore (MAS) for a new entity, Paxos Digital Singapore Pte. Ltd., which plans to launch a stablecoin backed by the US dollar.
Once fully approved, the new firm will be able to partner with businesses to issue the stablecoin in Singapore, following MAS’ proposed regulations for stablecoins.
According to Paxos head of strategy Walter Hessert, the increasing demand for the U.S. dollar worldwide makes it challenging for non-US consumers to obtain it safely and reliably with regulatory protection.
This in-principle approval from MAS will allow Paxos to expand its regulated platform to more users globally.
On August 15, MAS introduced its final framework for regulating stablecoins, specifically targeting tokens issued by non-banking entities and pegged to the value of the Singapore dollar or other major currencies such as the euro, British pound, and US dollar, with a circulation of more than 5 million Singapore dollars ($3.7 million).