Paxos, a stablecoin issuer, has secured preliminary approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi to issue stablecoins and offer digital asset services.
Paxos, a stablecoin issuer, has secured preliminary approval from the Financial Services Regulatory Authority (FSRA) of Abu Dhabi to issue stablecoins and offer digital asset services.
According to an announcement made on November 29, Paxos disclosed that the FSRA had granted preliminary approval for the company to issue stablecoins backed by the US dollar and provide crypto-brokerage and custody services within Abu Dhabi's jurisdiction. This regulatory milestone follows a similar endorsement obtained by Paxos from regulators in Singapore, where the company's local entity is preparing to launch a stablecoin backed by the US dollar.
Walter Hessert, the Head of Strategy at Paxos, emphasized the firm's dedication to international growth through regulated frameworks. He stated:
“Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks. Paxos is unique in the industry for this approach and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner.”
Upon receiving full approval, Paxos intends to expand the utilization of its stablecoins. Paxos previously collaborated with PayPal to introduce the PYUSD stablecoin in August.
Abu Dhabi has been actively developing regulations pertaining to distributed ledger technology, with comprehensive guidelines introduced by the Abu Dhabi Global Market on November 1. Since 2018, the region has been working on cryptocurrency regulations with the aim of establishing a robust regulatory framework for the digital asset industry.
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