Paxos, a cryptocurrency company, has obtained the necessary approval from the Monetary Authority of Singapore (MAS) to offer digital payment token (DPT) services. This approval allows Paxos to issue a stablecoin that complies with MAS’ upcoming stablecoin framework, according to an official statement. In November 2023, Paxos received preliminary approval from the Singapore regulator, stating that it would only issue tokens that are subject to oversight by prudential regulators. Walter Hessert, Head of Strategy at Paxos, stated that stablecoins issued in accordance with MAS’ standards represent a significant step towards democratizing access to commerce and financial services. MAS finalized its stablecoin regulatory framework in August 2023 to ensure price stability for regulated stablecoins in Singapore. Paxos already issues the USDP stablecoin and holds licenses in the US and UAE. The recent license approval comes at a time when MAS has highlighted higher terrorism financing risk for DPT service providers. In addition, Paxos has chosen DBS as its primary banking partner for cash management and stablecoin custody. DBS offers various crypto-related services, including digital asset custody, a trading exchange for security tokens, and a crypto portfolio management app.
