Cryptocurrency brokerage firm Paxos has received preliminary approval from the Monetary Authority of Singapore to offer digital payment token services in the country.
Cryptocurrency brokerage firm Paxos has received preliminary approval from the Monetary Authority of Singapore to offer digital payment token services in the country. The in-principle approval allows Paxos to operate under the Payments Services Act (PSA) as a new entity, Paxos Digital Singapore Pte. Ltd., while awaiting full regulatory approval.
Once granted full approval, Paxos plans to collaborate with enterprise clients to introduce a U.S. dollar-backed stablecoin in Singapore. The stablecoin aims to meet the global demand for the U.S. dollar, providing consumers outside the United States with a secure and regulated means of obtaining dollars.
Paxos Head of Strategy, Walter Hessert, highlighted the increasing demand for the U.S. dollar worldwide, emphasizing the challenges consumers face in accessing dollars safely and reliably.
Hessert said:
“This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world. [...]Global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”
The move aligns with Paxos' strategy to tap into the growing stablecoin market, which is projected to surge from $125 billion to $2.8 trillion over the next five years, according to brokerage firm Bernstein. This development follows Paxos' operating license granted in Singapore over a year ago, enabling the firm to offer tokenization, custody and trade services. Paxos recently came into the spotlight due to a $500,000 overpayment in Bitcoin fees in an operational error.
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