Paxos has introduced its Global Dollar (USDG), a US dollar-backed stablecoin, in Singapore. Designed to align with the Monetary Authority of Singapore’s (MAS) stringent regulatory framework, USDG will hold its reserves at DBS Bank, Southeast Asia’s largest and most regulatory-compliant bank.
Initially launched on the Ethereum blockchain, USDG aims to enhance enterprise adoption by combining regulatory compliance with strong liquidity standards, setting a new benchmark for stablecoin infrastructure.
USDG’s Strategic Framework: Setting a New Standard in Compliance and Enterprise Adoption
USDG’s reserves are fully backed by US dollar deposits and short-term government securities, managed by DBS Bank to ensure liquidity and stability. Paxos’ Head of Product, Ronak Daya, stated, “Enterprise interest in stablecoins has never been higher, but the market needs a solution that integrates compliance with true economic incentives for businesses.”
Marking one of the first stablecoins to meet MAS’s new framework, USDG highlights Singapore’s proactive stance on stablecoin regulation. Recent MAS data shows stablecoin payments in Singapore surpassed $1 billion in Q2 2024, driven by cost efficiency and enhanced transaction speed—demonstrating growing demand for compliant stablecoin solutions.
Partnership with DBS and Paxos’ Broader Expansion Plans
Paxos Digital Singapore, which received full MAS approval last year, collaborates with DBS Bank to boost trust and stability for USDG. This partnership aims to serve both crypto-focused businesses and traditional financial firms looking to integrate digital assets securely.
Since 2020, Paxos has launched several regulated assets, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). USDG expands on Paxos’ vision to reach global financial markets by partnering with major exchanges and financial platforms. Paxos is also expanding USDG’s blockchain support beyond Ethereum to enhance accessibility across different networks.
Paxos’ Call for Global Stablecoin Regulation
Paxos CEO Charles Cascarilla recently highlighted the importance of regulatory clarity in an open letter to U.S. officials, urging swift action to maintain global financial leadership. He emphasized that stablecoins like USDG could modernize financial infrastructure, as regions such as Singapore and the UAE continue to attract capital with favorable blockchain regulations.
On October 15, 2024, Paxos also launched a new stablecoin payments platform tailored for payment providers, with Stripe among the initial partners. This platform supports low-cost global transactions, allowing users to settle in fiat while simplifying onboarding, pay-ins, conversions, and payouts.
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