Paxos has received full approval from the Monetary Authority of Singapore (MAS) to offer digital payment token (DPT) services, marking a significant milestone for the crypto firm. The DPT license enables Paxos to issue stablecoins in alignment with MAS’s upcoming stablecoin framework, the company announced on Tuesday.
Having initially secured in-principle approval from MAS in November 2023, Paxos has now met all regulatory requirements to achieve full licensing. This move underscores Paxos’s commitment to issuing tokens under the oversight of prudential regulators. “Stablecoins issued in accordance with standards set by a regulator like MAS – known for its rigorous regulatory standards – represent a significant step towards democratizing access to commerce and financial services,” remarked Walter Hessert, Head of Strategy at Paxos.
In August 2023, MAS finalized its stablecoin regulatory framework to ensure high price stability for stablecoins regulated within Singapore. The framework stipulates that only entities fulfilling all specified requirements can apply for approval as “MAS-regulated stablecoins.”
Paxos, already known for issuing the USDP stablecoin with a circulating supply of 461.56 million, holds licenses in the US and UAE. Additionally, Paxos is the issuer behind PayPal’s stablecoin, PYUSD. The latest license approval arrives at a time when MAS has highlighted heightened terrorism financing risks for DPT service providers. A joint statement from the Ministry of Home Affairs, Ministry of Finance, and MAS on Monday emphasized findings from the latest risk assessment.
Futher Paxos has partnered with DBS Bank for cash management and stablecoin custody. Evy Theunis, head of digital assets at DBS, stated that DBS’s solutions will help stablecoin issuers meet rigorous regulatory and customer standards. “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,” Theunis added.
DBS, identified as an Ethereum “whale” by on-chain firm Nansen for holding $650 million worth of Ether as of May, has been at the forefront of the digital asset space. The bank offers a suite of services including digital asset custody, a trading exchange for security tokens, and a crypto portfolio management app, solidifying its position as a major player in the evolving digital asset ecosystem.
