Paxos, a prominent name in the cryptocurrency world, is set to enhance its presence in Asia by launching a new USD-backed stablecoin in Singapore. This move comes as Paxos Digital Singapore Pte. Ltd, a newly formed entity by Paxos, received in-principle approval from the Monetary Authority of Singapore (MAS). This development aligns with Singapore's comprehensive regulatory framework for stablecoins, which was finalized in August, covering single-currency stablecoins pegged to the Singaporean dollar or any G10 currency.
The launch of this stablecoin in Singapore is a strategic step for Paxos, mirroring its successful ventures in the United States, where it offers the USDP stablecoin. Notably, Paxos had partnered with PayPal in the U.S. to launch PYUSD, a USD-backed stablecoin, showcasing its prowess in creating stable and reliable digital assets. Paxos is one of only two firms, alongside StraitsX, to receive MAS's approval for this initiative, though the new stablecoin's name and specific details are yet to be disclosed.
Paxos's expansion in Singapore is part of its broader strategy to comply with local regulations and foster partnerships with enterprise clients. This move signifies Paxos's commitment to adhering to regulatory standards, ensuring a secure and trustworthy cryptocurrency environment. The firm has already established a significant presence in Singapore with a regulated entity under the country's Payment Services Act 2019, allowing Singapore-based customers to engage in various cryptocurrency transactions.
Backed by high-profile investors like Bank of America, Peter Thiel's Founders Fund, and Coinbase Ventures, Paxos has raised over $540 million in funding, valuing it at $2.4 billion during its latest funding round in 2021. This new venture in Singapore underscores Paxos's growing influence in the global cryptocurrency market, setting a precedent for regulatory compliance and innovation.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.