Outside Source
Paxos launches USDG, a Singapore-compliant stablecoin, partnering with DBS Bank for US dollar reserves in line with Singapore’s MAS framework.
News
Regulated blockchain infrastructure company Paxos has introduced Global Dollar (USDG), a Singapore-compliant stablecoin whose United States dollar backings are reserved and managed by DBS Bank.
On Oct. 31, Paxos announced the launch of its second localized stablecoin offering, USDG, in Singapore five months after establishing the United Arab Emirates-regulated interest-bearing Lift Dollar (USDL) stablecoin.
Source: Paxos
Supporting stablecoin innovation through regulatory clarity
Paxos Digital Singapore, the Singapore wing of Paxos, gained approval for USDG in July from the Monetary Authority of Singapore (MAS). At the time, Evy Theunis, head of digital assets at DBS Bank, explained the reasoning behind partnering with the crypto company:
“Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem.”
According to Paxos, USDG complies with MAS’ upcoming stablecoin framework established in August 2023. As a result, USDG is currently available on the Ethereum blockchain and will be made available on other chains as regulations evolve.
Finalized stablecoin regulatory framework for Singapore. Source: The Monetary Authority of Singapore
Plans for global distribution of USDG
Paxos said in a statement on X:
“USDG is built to power the next wave of global stablecoin adoption, catering to both crypto-native ecosystems and regulated institutions that maintain higher standards of operation.”
The company plans to partner with global crypto exchanges, wallets, and trading platforms to make USDG available to individuals and institutions.
Parallely, Sygnum Bank, a Swiss crypto bank, highlighted that increasing regulatory clarity is also encouraging traditional financial institutions to launch stablecoins. It added:
“Stablecoin providers who are already adhering to the developing regulatory standards are likely to gain the advantage as stablecoin use in real-world transactions grows.”
Related: Singapore bolsters fintech hub with Global Finance Technology Network
USDG is backed 1:1 with the US dollar in the form of dollar deposits, short-duration US government securities and other cash equivalents, ensuring that users can redeem their tokens for fiat.
Ronak Daya, head of product at Paxos, believes the DBS partnership will enable enterprise-level stablecoin adoption.
Other digital asset offerings by Paxos include PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).
Magazine: We took an ETHSafari to see how crypto is working out in Africa
This article first appeared at Cointelegraph.com News
