- Paxos, a crypto infrastructure firm, has received in-principle approval from the Monetary Authority of Singapore (MAS).
- The company plans to launch a U.S. dollar-backed stablecoin in Singapore.
- Full approval is pending, and upon receiving it, Paxos intends to collaborate with enterprise clients.
Crypto infrastructure firm Paxos has received in-principle approval from the Monetary Authority of Singapore (MAS) for a new entity planning to launch a U.S. dollar-backed stablecoin in the city-state.
The new firm, Paxos Digital Singapore Pte. Ltd., gained initial approval to offer digital payment token services and intends to issue a dollar-pegged stablecoin aligned with Singapore’s proposed stablecoin regulations.
According to a Paxos statement on November 15th, upon receiving full approval, the company will partner with enterprise clients to issue the stablecoin in Singapore. Regulators first announced a framework for stablecoin oversight in August, aiming to govern tokens pegged to the Singapore dollar or G10 currencies like the U.S. dollar.
“Global demand for the U.S. dollar has never been stronger, yet it remains difficult for consumers outside the U.S. to get dollars safely and reliably under regulatory protections,” said Paxos head of strategy Walter Hessert. “This approval will allow Paxos to expand its regulated platform worldwide.”
Singapore’s MAS finalized stablecoin framework in August
The in-principle nod continues Singapore’s move toward regulated stablecoin services. MAS finalized its stablecoin framework in August, requiring licenses for any new stablecoins exceeding SGD 5 million in circulation. Regulators cited risks like asset backing and redemption rights as factors in the decision.
Paxos has prior experience in dollar-pegged stablecoins, formerly minting Binance’s now-defunct BUSD before being ordered to cease by New York regulators. The company issues monthly attestations to prove the full dollar backing of reserves.
In August, Paxos also supported PayPal’s launch of the new stablecoin PYUSD, continuing its emergence as a leader in white-label stablecoin services. The PYUSD launch demonstrated the growing appeal of stablecoins for payments and settlements.
Singapore joins jurisdictions like New York and Wyoming in crafting stablecoin-specific regulations. The market has ballooned to over $160 billion in recent years, prompting greater regulatory scrutiny. Leading stablecoins like Tether and USD Coin are now seeking more oversight to build trust.
Paxos is poised to become a central player under Singapore’s incoming stablecoin framework. The MAS has not announced a timeline for finalizing approvals. But the in-principle nod signals that regulated and transparent stablecoins will soon gain a Singapore-based champion.