The Singapore Fintech Festival (SFF), organized by MAS, is currently taking place, and today Paxos has achieved another breakthrough!

The issuer of USD-backed stablecoin BUSD and collaborator in launching PYUSD for payment giant PayPal, Paxos, announced today (the 16th) that it has obtained in-principle approval (IPA) from the Monetary Authority of Singapore (MAS). This allows its Singapore entity, Paxos Digital Singapore Pte. Ltd., to offer digital asset payment services.

USD-Backed Stablecoin in Singapore Coming Soon

It mentions in the press release,

"Upon receiving full approval, Paxos will be able to partner with enterprise clients to issue the USD-backed stablecoin in Singapore."

Walter Hessert, Paxos Head of Strategy, commented,

“Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably and under regulatory protections. This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world.”

Singapore's Stablecoin Regulatory Proposal

On August 13th, MAS proposed a regulatory framework for stablecoins applicable to the issuance of single-currency stablecoins (SCS) in Singapore pegged to the Singapore dollar or any of the Group of Ten (G10) currencies.

MAS has put forth various key requirements for issuers regarding value stability, capital requirements, face-value redemption, and transparent disclosures.

Milestone of Paxos in Stablecoin

On August 7th of this year, Paxos shook the market by assisting PayPal in issuing the USD stablecoin PYUSD. According to CMC data, PYUSD currently holds a market cap of around $158 million, ranking as the 13th largest stablecoin by market value.

One of the most memorable collaborations for users might be Paxos' previous partnership with Binance to issue BUSD. However, in February this year, it was halted as the New York State Department of Financial Services deemed it an unregistered security, demanding its issuance cease.