Paxos, a cryptocurrency firm, has been granted complete approval by the Monetary Authority of Singapore (MAS) to provide digital payment token (DPT) services.
According to an official statement, Paxos intends to issue a stablecoin consistent with the forthcoming stablecoin framework of MAS due to the DTP license.
In November 2023, Paxos received preliminary approval from the Singapore regulator, translating to in-principle approval. At that time, the organization declared it would exclusively distribute tokens subject to prudential regulators’ supervision.
According to Walter Hessert, Head of Strategy at Paxos, stablecoins issued in compliance with the standards established by a regulator such as MAS, recognized for its stringent regulatory standards, are a substantial stride toward democratizing access to financial services and commerce.
MAS finalized the stablecoin regulatory framework in August 2023 to guarantee the high price stability of stablecoins regulated in Singapore. The regulator stated that only entities that meet the framework’s requirements can petition for approval of “MAS-regulated stablecoins.”
Paxos has already issued the USDP stablecoin, which has a circulating supply of 461.56 million and is licensed in the United States and the United Arab Emirates. Furthermore, the same organization also produces PayPal’s stablecoin, PYUSD.
The most recent license approval occurred when MAS identified an elevated terrorism financing risk for DPT service providers. A joint statement was released Monday by the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore, emphasizing the most recent risk assessment findings.
Paxos Partner With DBS Bank For Cash Management
Furthermore, Paxos has chosen DBS as its primary banking partner for stablecoin custody and revenue management. Evy Theunis, director of digital assets at DBS, stated that DBS’s solution will assist stablecoin issuers in adhering to the rigorous standards regulators and customers anticipate.
“This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now.”
Nansen, an on-chain firm, identified Singapore’s multinational DBS bank as an Ethereum “whale” in May, as it disclosed holding $650 million in Ether.
DBS has been providing various services and is not a newcomer to the crypto industry. They comprise crypto portfolio management software, a trading exchange for security tokens, and digital asset custody.