Paxos, a regulated blockchain infrastructure company, has announced the launch of its new stablecoin, Global Dollar (USDG), which is compliant with Singaporean regulations.
Paxos, a regulated blockchain infrastructure company, has announced the launch of its new stablecoin, Global Dollar (USDG), which is compliant with Singaporean regulations.
The announcement, made on Oct. 31, follows the company’s earlier introduction of the interest-bearing Lift Dollar (USDL) stablecoin in the United Arab Emirates.
USDG is backed by U.S. dollar reserves managed by DBS Bank, which has partnered with Paxos to meet regulatory expectations in the digital asset space. The Monetary Authority of Singapore (MAS) approved USDG in July, aligning it with the upcoming stablecoin framework established by the MAS in August 2023.
Evy Theunis, head of digital assets at DBS Bank, emphasized the importance of robust standards for stablecoin issuers, suggesting that the partnership enhances DBS's involvement in the digital asset ecosystem.
USDG is currently available on the Ethereum blockchain, with plans to expand to additional chains as regulatory landscapes develop.
Paxos aims to facilitate the global adoption of USDG, targeting both crypto-native platforms and regulated institutions. The company plans to collaborate with various global crypto exchanges, wallets, and trading platforms to broaden the availability of USDG to a wider audience.
Sygnum Bank, a Swiss crypto bank, noted that increasing regulatory clarity encourages traditional financial institutions to engage in stablecoin issuance.
They indicated that providers adhering to developing regulatory standards are likely to gain a competitive edge as stablecoin usage in real-world transactions continues to grow.
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