Paxos has partnered with Singapore’s largest bank to launch USDG stablecoin

What’s new? Infrastructure blockchain company Paxos has announced the launch of the Global Dollar (USDG) stablecoin, designed with Singapore’s upcoming regulatory framework for the industry in mind. The asset will be issued by Paxos’ local unit Paxos Digital Singapore, with the city’s largest bank, DBS, acting as the main partner, managing the USDG cash and holding reserves.

Press release

What else is known? The company has already received approval for the issuance of stablecoins from the central bank, the Monetary Authority of Singapore (MAS). Initially, USDG pegged to the US dollar will be available on the Ethereum network, with plans to add support for more blockchains over time.

Subsidiary Paxos Global Pte will partner with global exchanges, wallets, and platforms to distribute USDG to individuals and institutions.

USDG will be the second localized asset Paxos has developed to comply with local laws. The company previously launched Lift Dollar (USDL) in the UAE.

“Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises.

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,” said Paxos Head of Product Ronak Daya.

USDG offers a reliable solution with a first-class banking partner DBS, which will be a catalyst for innovation and the introduction of stablecoins to enterprises on a global scale," said Ronak Daya, head of the Paxos product department.

In August last year, MAS published final changes to the regulatory framework for digital assets aimed at, among other things, ensuring the stable value of stablecoins in the local market.

This goal will be achieved through a number of requirements for issuers. Specifically, companies are required to provide highly liquid, low-risk reserve assets, have a minimum core capital of SGD1 million (over $ 750 000), and disclose information important to holders.

The rules must be approved by parliament for implementation.

Thailand’s leading bank SCB has launched cross-border transfers in stablecoins

The project was implemented in partnership with institutional custodian Fireblocks

Read more

Paxos’ products and platform are regulated by the New York State Department of Financial Services (NYDFS). The company issues several stablecoins, including its own USDP, as well as PYUSD for payment company PayPal. It previously issued the BUSD stablecoin for the world’s largest crypto exchange Binance, but its issuance was halted by the NYDFS.

Last month, payment company Stripe, backed by Paxos, launched a service for payments in USDP and PYUSD stablecoins, as well as USDC from issuer Circle.

Also in October, DBS Bank integrated tokenization and smart contracts into its existing products.