Paxos Secures MAS Approval for Stablecoin Issuance, Partners with DBS Bank
Paxos, a leading regulated blockchain and tokenization infrastructure platform, has achieved a significant milestone in its global expansion efforts. The company announced on July 1, 2024, that it has received full approval from the Monetary Authority of Singapore (MAS) to offer digital payment token services as a Major Payments Institution through its Singapore entity, Paxos Digital Singapore Pte. Ltd.
This approval enables Paxos to issue stablecoins in compliance with MAS’ upcoming stablecoin framework, making Singapore the third market, alongside the United States and United Arab Emirates, where Paxos and its related entities are authorized to issue stablecoins.
Walter Hessert, Head of Strategy at Paxos, emphasized the importance of this development, stating, “Stablecoins issued in accordance with standards set by a regulator like MAS – known for its rigorous regulatory standards – represent a significant step towards democratizing access to commerce and financial services.”
In conjunction with this approval, Paxos has announced a strategic partnership with DBS Bank, Southeast Asia’s largest bank by assets. DBS will serve as Paxos’ primary banking partner for cash management and custody of stablecoin reserves. This collaboration is expected to bolster trust and security in stablecoin adoption, leveraging DBS’ reputation as a leader in banking innovation and its recognition as the Safest Bank in Asia for 15 consecutive years by Global Finance.
Evy Theunis, Head of Digital Assets, Institutional Banking Group at DBS Bank, commented on the partnership, saying, “We firmly believe that trust and security are key to wider stablecoin adoption. Having examined all relevant aspects that come with managing reserve assets, stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them.”
This development follows Singapore’s efforts to promote the use of blockchain technology and position itself as a global financial hub. The MAS has been working on a comprehensive stablecoin regulatory framework, which is expected to include stringent requirements such as a Value Stabilising Mechanism, bi-monthly independent audits, and a redemption mechanism for stablecoin holders.
