Paxos Gains Approval from Singapore to Issue Stablecoins, Partners with DBS Bank

Paxos has achieved a significant milestone by receiving full approval from Singapore’s central bank to issue stablecoins, according to The Block. This development allows Paxos Digital Singapore Pte. LTD. to provide digital payment token services as a major payments institution within the country.

Paxos Expands Global Reach

With this approval, Paxos is poised to issue stablecoins that comply with Singapore’s rigorous regulatory framework. Walter Hessert, head of strategy at Paxos, emphasized the importance of this approval, highlighting its role in democratizing access to financial services globally. Paxos is already authorized to issue stablecoins in the U.S. and the United Arab Emirates, and this new approval further solidifies its international presence.

Partnership with DBS Bank

In conjunction with receiving regulatory approval, Paxos announced a partnership with DBS Bank, one of Singapore’s leading financial institutions. This collaboration will focus on cash management and the custody of stablecoin reserves. Evy Theunis, head of digital assets at DBS Bank’s institutional banking group, expressed enthusiasm for the partnership, noting DBS’s pioneering role in the digital asset ecosystem.

DBS Bank’s Continued Involvement in Crypto

DBS Bank has been an active participant in the crypto industry, having launched a fiat-to-crypto exchange in 2020 and collaborated with the decentralized gaming platform Sandbox to create a metaverse experience. This partnership with Paxos further enhances DBS’s involvement in the digital asset space.

Regulatory Landscape in Singapore

Currently, 19 firms, including Paxos, Blockchain.com, Circle, and Coinbase, have obtained the Major Payment Institution (MPI) license from Singapore. The Monetary Authority of Singapore (MAS) requires firms to meet specific criteria, including maintaining a base capital of $250,000 Singapore dollars and having a permanent business presence in Singapore, to secure this license.

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