Paxos Secures DPT License in Singapore for MAS-Compliant Stablecoin Issuance
Paxos, a prominent player in the crypto sector, has obtained full approval from the Monetary Authority of Singapore (MAS) to provide digital payment token (DPT) services. This milestone enables Paxos to proceed with its plans to introduce a stablecoin that adheres to MAS’ forthcoming stablecoin framework, according to an official announcement.
In November 2023, Paxos initially received provisional approval from Singaporean regulators, signaling their intent to issue tokens subject to rigorous oversight by prudential regulators.
Walter Hessert, Paxos’ Head of Strategy, emphasized the significance of aligning stablecoin issuance with MAS standards, known for their stringent regulatory norms. He highlighted that such compliance facilitates broader access to financial services and commerce.
MAS finalized its stablecoin regulatory framework in August 2023, aimed at ensuring stable prices for regulated stablecoins in Singapore. The framework stipulates that entities meeting all requirements can apply for approval to issue MAS-regulated stablecoins.
Paxos, which already issues the USDP stablecoin with a circulating supply of 461.56 million units and holds licenses in the US and UAE, received this recent license approval amidst heightened concerns over terrorism financing risks flagged by MAS for DPT service providers. This concern was jointly addressed by the Ministry of Home Affairs, Ministry of Finance, and MAS in a recent statement.
In addition to regulatory milestones, Paxos has partnered with DBS Bank for cash management and stablecoin custody. Evy Theunis, head of digital assets at DBS, highlighted their role in helping stablecoin issuers meet stringent regulatory and customer expectations.
DBS, a multinational banking giant based in Singapore, made headlines by holding $650 million worth of Ether in May, cementing its status as a significant player in digital assets. The bank offers a suite of crypto-related services, including custody, trading, and portfolio management applications.
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