Paxos and DBS Bank launch stablecoin: fully approved by the Monetary Authority of Singapore, predicting the market will grow 10 times

Paxos has received approval from the Monetary Authority of Singapore

Paxos Digital Singapore Pte. Ltd. has received full approval from the Monetary Authority of Singapore (MAS) to issue stablecoins under MAS’ upcoming framework. The approval marks Singapore as the third country after the United States and the United Arab Emirates where Paxos can issue stablecoins.

Walter Hessert, Head of Strategy at Paxos, said that issuing stablecoins under strict regulatory standards such as the Monetary Authority of Singapore is critical to democratizing commerce and financial services. He sees the approval as an important step in providing secure U.S. dollar access to more users around the world.

Paxos Partners with DBS Bank

Paxos has selected DBS Bank, the largest bank in Southeast Asia, as its lead partner for cash management and stablecoin reserve custody. Evy Theunis, Head of Digital Assets at DBS Bank, stressed the importance of trust and security in the wider adoption of stablecoins. Theunis believes that their solution will help stablecoin issuers meet the high standards expected by regulators and customers.

Paxos layoffs: 65 employees, about 20% of its total workforce

Paxos recently made a strategic shift and laid off 65 employees, about 20% of its total workforce. CEO Charles Cascarilla explained that this decision enables Paxos to seize opportunities in the tokenization and stablecoin space, and more than $500 million in assets lay the foundation for the company's future success. Cascarilla predicts that the stablecoin market will grow 10 times in the next few years, thanks to the progress of the financial system through tokenization.

Paxos focuses more on the tokenization and stablecoins of assets

Paxos plans to phase out its commodity and securities settlement services and focus more on asset tokenization and stablecoins. Although it will take time to launch and expand these new products, this shift is in line with its strategic goal of expanding regulated token issuance.

Solana launches token expansion to lock in enterprise customers! 7 new standards, Paxos leads the adoption

The Solana blockchain has shown a significant recovery and progress in the past year. Solana's commercial development capabilities have been recognized, attracting payment giants such as Visa and Mastercard. In addition, Paxos launched a new stablecoin USDP on the Solana network.

In January of this year, Solana announced the latest version of its SPL token standard: token extensions. These extensions are designed to help enterprises transform on-chain by providing enhanced security, compliance and other services on the Solana network. These token extensions are developed in collaboration with large regulators and connect to Solana applications through standard interfaces, allowing specialized tools and functions to be created at the token level. This plug-and-play, regulatory-compliant functionality greatly reduces development time and resources.

Solana co-founder and CEO Anatoly Yakovenko emphasized that token extensions are built on the features that make Solana an ideal destination for developers. Here are seven major features and their potential uses:

• Confidential transfers: protect the confidentiality of user balances and hide transaction amounts during transfers. Applications include on-chain payroll, B2B payments, and fund management.

• Transfer pegs: allow token issuers to control which wallets can interact with their tokens and how tokens interact with users. Uses include KYC verification and copyright enforcement.

• Transfer Fees: Fees imposed at the protocol level. Applications include perpetual royalties, publisher fees, and transaction fees.

• Perpetual Grants: Grant irrevocable rights to a token to a program. Use cases include automated subscription services, real-time updates of real-world assets, and regulatory compliance for stablecoins (including freeze and seizure orders).

• Metadata Pointers: Create a verifiable link between a token and metadata. Uses include token verification and receivable attribution.

• Default Account State: Configure and enforce token account permissions. Applications include KYC verification.

Non-transferable Tokens: Prevent anyone other than the issuer from reallocating token ownership. Uses include managing external databases and minting non-transferable NFTs or other assets.

Paxos being one of the first companies to adopt these new standards demonstrates strong interest from regulated entities. Token scaling is expected to make the Solana network more attractive to businesses by providing powerful tools for regulatory compliance and enhanced functionality.