- The Monetary Authority of Singapore granted Paxos Digital Singapore Pte. Ltd. approval in principle.
- Paxos has created a Singaporean entity for launching a new USD-backed stablecoin in the country.
Blockchain infrastructure company Paxos has received preliminary approval from Singapore to launch a new stablecoin that is directly correlated with the US dollar.
According to the report, the asset will be completely collateralized by reserves held by Paxos, which has committed to regular audits and reserve reporting. The reserves consist of fiat currency and cash equivalents.
Even before official laws are passed, the stablecoin has been deemed regulated by the Monetary Authority of Singapore.
“Global corporations work with us to power stablecoin solutions that drive their businesses and respond to their customers’ requirements because Paxos upholds the highest levels of compliance and oversight.” stated Walter Hessert, Head of Strategy at Paxos.
Paxos has consented to the stringent know-your-customer and anti-money laundering regulations enforced by Singapore as part of the in-principle approval.
In addition PayPal, a major player in payments, introduced the Ethereum-based PYUSD stablecoin in September of this year thanks to Paxos. The action spurred discussion over whether corporate-backed stablecoins reduce the risk of centralization or help with general acceptance.