Paxos secures Singapore MPI licence and DBS Bank partnership for stablecoin issuance
Blockchain infrastructure platform Paxos is set to begin issuing stablecoins and other digital payment token services in Singapore after receiving a major payment institution (MPI) licence from the Monetary Authority of Singapore (MAS).
Paxos secures MPI licence for stablecoin issuance in Singapore
Singapore becomes the third market worldwide, after the USA and the UAE, where New York-headquartered Paxos is licenced to issue stablecoins.
Its latest approval comes just less than a year after MAS established a new regulatory framework for stablecoins, mandating key requirements for issuers including the maintenance of minimum base capital and liquid assets, five-day redemption timelines, and the provision of appropriate disclosures to users.
Paxos has selected DBS Bank – Southeast Asia’s largest bank by assets – as its primary banking partner for cash management and custody of stablecoin reserves.
“Stablecoins issued in accordance with standards set by a regulator like MAS…represent a significant step towards democratising access to commerce and financial services,” comments Walter Hessert, head of strategy at Paxos.
“Receiving approval from MAS is an important step for Paxos and our global enterprise partners to safely offer access to US dollars to more users around the world.”
Adding to this, Evy Theunis, head of digital assets, institutional banking group at DBS Bank, describes trust and security as “key to wider stablecoin adoption”, and claims that the bank will enable issuers, including Paxos, to “meet the robust standards regulators and customers expect from them”.
