Paxos released a new stablecoin aimed at global adoption and regulated by Singapore’s MAS.
Stablecoin and real world asset (RWA) issuer Paxos announced the launch of its new stablecoin—the Global USD (USDG). USDG will be regulated by the Singaporean financial authority, the Monetary Authority of Singapore (MAS). The Singaporean banking giant, Development Bank of Singapore (DBS), will hold the US dollar reserves backing Paxos’ USDG.
This announcement marks Paxos’ second stablecoin launch after gaining regulatory approval in a certain jurisdiction. The first was the launch of the yield-generating Lift USD (USDL) in Abu Dhabi with the Financial Services Regulatory Authority (FSRA).
In a press release, Ronak Daya, Head of Product at Paxos, mentioned, “Keeping with the Paxos tradition of powering infrastructure for the world’s most important and innovative enterprises, we are thrilled to launch the Global Dollar (USDG).” He added, “USDG offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.”
Paxos’ Singapore entity—Paxos Digital Singapore—gained approval to launch this stablecoin in July. Back then, Evy Thuenie, head of digital assets, institutional banking group at DBS, said, “Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem, of which we have been a pioneer and innovator for several years now.”
Walter Hessert, head of strategy at Paxos, said in July, “Stablecoins issued in accordance with standards set by a regulator like MAS – known for its rigorous regulatory standards – represent a significant step towards democratizing access to commerce and financial services.”
USDG Will Comply With New Singaporean Stablecoin Rules
With the USDG launch, Paxos and its stablecoin will comply with the stablecoin framework released by the MAS in August for non-bank issued stable assets backed by and pegged to ‘single’ currencies. These currencies must include either the Singaporean dollar or those of any G10 country. According to the MAS, the framework will apply to stablecoins that have a circulation of over 5 million Singaporean dollars.
Furthermore, USDG can be utilized on the Ethereum blockchain, with more network integrations soon. Paxos aims to increase stablecoin adoption at the enterprise-level with the stablecoin. It plans to expand USDG accessibility not just across chains but also global crypto exchanges.
