Paxos, known for cryptocurrencies such as PAX Gold and USDP, has received “full approval” from the central bank in Singapore, which has some of the toughest financial regulations in the world. The company will now be able to issue stablecoins through its subsidiary in the country, “Paxos Digital Singapore Pte. LTD”, its subsidiary in the country.

“Easier access to the US dollar…”

Speaking about the license, Walter Hessert, chief strategy officer at Paxos, pointed out the difficulty of complying with the standards set by the Monetary Authority of Singapore (MAS):

“Launching a stablecoin under the rules of a very rigorous regulator like MAS is a huge step forward in the democratization of trade and financial services. This license will allow us and our partners to more easily deliver the US dollar to the world and to the masses.”

Crucial partnership with DBS

The license was officially announced by the Paxos company, and the company gained the title of “major payments company”. Paxos will be able to offer “digital token payment services”. The company will thus have the right to issue stablecoins in Singapore after the United Arab Emirates. For cash management, the company partnered with DBS bank, which is based in Singapore and provides services to many countries in Asia.

DBS started providing cryptocurrency services to corporate firms in the country in 2020 and even established an exchange called DBS Digital Exchange (DDEx). This exchange also serves institutional firms and accredited investors. The exchange also only allows Bitcoin, Ethereum, Bitcoin Cash and XRP transactions.

DBS is also seen as one of the largest financial services companies in Asia.

Paxos also launched Binance’s former stablecoin BUSD, but was blocked in the US. Production of the BUSD stablecoin was subsequently halted.