The Monetary Authority of Singapore (MAS) has granted complete sanction to Crypto firm Paxos to provide digital payment token (DPT) services.
Paxos intends to issue a stablecoin that is consistent with the forthcoming stablecoin framework of MAS as a result of the DTP license, according to an official statement.
In November 2023, Paxos received preliminary approval from the Singapore regulator, which translated to in-principle approval. At that time, the organization declared that it would exclusively distribute tokens that are subject to prudential regulators’ supervision.
According to Walter Hessert, Head of Strategy at Paxos, stablecoins that are issued in compliance with the standards established by a regulator such as MAS, which is recognized for its stringent regulatory standards, are a substantial stride toward the democratization of access to financial services and commerce.
In order to guarantee that stablecoins regulated in Singapore can maintain a high level of price stability, the MAS finalized the stablecoin regulatory framework in August 2023. The regulator stated that only entities that meet all of the framework’s requirements are eligible to petition for approval of “MAS-regulated stablecoins.”
Paxos possesses licenses in the United States and the United Arab Emirates and has already issued the USDP stablecoin, which has a circulating supply of 461.56 million. Additionally, the same organization is responsible for PayPal’s stablecoin, PYUSD.
The most recent license approval occurred at a time when MAS identified an elevated risk of terrorism financing for DPT service providers. On Monday, the Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore jointly released a statement that emphasizes the findings of the most recent risk assessment.
Furthermore, Paxos has chosen DBS as its primary banking partner for stablecoin custody and revenue management. Evy Theunis, director of digital assets at DBS, stated that DBS’s solution will assist stablecoin issuers in adhering to the rigorous standards that regulators and consumers anticipate.
Nansen, an on-chain firm, identified Singapore’s multinational DBS bank as an Ethereum “whale” in May, as it disclosed possessing $650 million in Ether.
DBS has been providing a variety of services and is not a newcomer to the crypto industry. They consist of a crypto portfolio management software, a trading exchange for security tokens, and digital asset custody.
Also Read: German authorities send the exchange 94 million dollars in Bitcoin
Wallets