Paxos partners with DBS Bank to launch regulated stablecoin in Singapore

Paxos, in collaboration with DBS Bank, has introduced USDG, a stablecoin fully backed by the United States dollar and approved for compliance in Singapore.

According to an October 31 announcement, USDG, now available on the Ethereum blockchain, would soon expand to other networks as regulations allow.  Paxos described USDG as a stablecoin built for both “crypto-native ecosystems and regulated institutions.”

The collaboration with DBS Bank ensures that USDG’s US dollar backing is maintained through dollar deposits, short-duration US government securities, and cash equivalents, providing customers with 1:1 redemption.

Ronak Daya, Head of Product at Paxos said USDG was developed because the market lacks a stablecoin that “combines regulatory compliance with real economic incentives for enterprises, adding:

USDG offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.

Paxos indicated that it plans to partner with global exchanges, wallets, and trading platforms to ensure global accessibility for the new stablecoin.

The company initially received approval for USDG from the Monetary Authority of Singapore (MAS) in July, enabling Paxos Digital Singapore, the local branch, to bring the stablecoin to market. 

At the time, DBS partnered with the stablecoin issuer to offer custodial services, with the bank’s head of digital assets Evy Theunis claiming that the bank aims to support stable coin issuers in meeting “the robust standards regulators and customers expect from them.”

Paxos strengthens footing in the stablecoin sector

Over the years, Paxos has focused on expanding its market while also developing various stablecoin-related initiatives.

This launch is part of Paxos’ continued expansion into regulated stablecoin markets, with USDG marking its second regional offering following the UAE’s Lift Dollar (USDL).

In June, the company launched USDL, a yield-bearing stablecoin through its UAE-regulated affiliate, Paxos International.

This stablecoin is backed 1:1 by the US dollar, with reserves held in short-term US Treasury bills and cash equivalents.

Daily yields from these assets are distributed directly to holders’ wallets, providing users with a steady return.

Following USDL, Paxos introduced a wrapped version, wUSDL, on the Injective blockchain.

This variant allows users to participate in decentralised finance protocols within Injective, offering a way for holders to earn yield in DeFi environments.

Furthering its reach into the payments industry, Paxos recently launched a new payment platform designed for payment service providers (PSPs) and fintech firms. It enables PSPs to integrate stablecoin payment options seamlessly, providing businesses with a way to offer stablecoin payments to customers.

Stripe, a leading global payment processor, was the first company to adopt Paxos’ platform, implementing it into its “Pay with Crypto” offering to streamline stablecoin acceptance for merchants.

In addition to USDG and USDL, Paxos has developed four other stablecoins including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). The firm is currently licensed to operate in the United States, the UAE, and Singapore.

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