Crypto company Paxos is taking a significant step by launching a new USD-backed stablecoin through its newly established Paxos Digital Singapore Pte. Ltd. in Singapore. The Monetary Authority of Singapore has given principle approval for this venture, which is seen as a strategic expansion into the Asian stablecoin market. This move strengthens Paxos’ presence in the Asian market.
Approval from Singapore
With the principle approval from the Monetary Authority of Singapore (MAS), Paxos Digital Singapore Pte. Ltd. has reached an important milestone and positioned itself as an authorized elite organization for this endeavor. This approval underscores Paxos’ commitment to comply with Singapore’s stablecoin regulations completed by MAS in August. The framework specifically addresses stablecoins pegged to the Singapore dollar or any G10 currency, including the US dollar.
Paxos’ decision to establish a Singapore entity is a move in line with its commitment to conform to local regulations and facilitate strategic partnerships, similar to its collaboration with PayPal in the US. The brand and specific details of the new stablecoin have not been disclosed yet, but Paxos has stated that it will be USD-backed and issued through its Singapore-based entity.
Paxos’ Past Performance and Expansion Strategy
This initiative follows Paxos’ success in offering the USD-backed stablecoin USDP in the United States. The establishment of Paxos Digital Singapore Pte. Ltd. demonstrates the company’s proactive approach to navigating local regulations and engaging with institutional clients. In particular, Paxos has shown its ability to encourage adoption through partnerships, similar to its collaboration with PayPal.
This initiative is not Paxos’ first entry into the Singapore market. The company’s first Singapore-based entity obtained a license from MAS under the 2019 Payment Services Act. This license made Paxos the first US-based crypto firm to receive such approval. It facilitated the participation of Singapore-based customers in Paxos’ cryptocurrency brokerage platform, which offers a range of services.
Paxos’ Strategic Move Strengthens Its Position
Supported by major investors such as Bank of America, Peter Thiel’s Founders Fund, and Coinbase Ventures, Paxos continues to strengthen its position in the crypto sector. The company has raised over $540 million in funding to date and has been valued at $2.4 billion. Lastly, Paxos’ strategic expansion into Singapore adds another advantage to its impressive journey, emphasizing compliance, strategic partnerships, and its presence in the global market.
