Paxos launches USDG stablecoin in partnership with DBS bank
Paxos, a blockchain infrastructure company, announced the launch of the Global Dollar (USDG). It is a dollar-backed stablecoin designed to meet new stablecoin regulations in Singapore. The USDG will be issued by Paxos Digital Singapore, the company's arm in the country. In addition, it has the support of DBS bank, the largest financial institution in Singapore, which will act in cash management and custody of USDG reserves.
According to Ronak Daya, head of products at Paxos, there is a growing interest in stablecoins from large companies. He also mentioned the lack of solutions that combine regulatory compliance and real economic incentives.
“USDG brings a trusted solution, backed by a world-class bank like DBS, that will be the catalyst to drive stablecoin innovation and large-scale adoption by global enterprises,” said Daya.
Paxos Singapore had already received approval from the Monetary Authority of Singapore (MAS) in July this year to issue stablecoins in the country. The stablecoin, initially available on the Ethereum blockchain, may also be issued on other blockchains, expanding its reach.
Paxos launches stablecoin in Singapore
This launch marks Paxos' second localized stablecoin, following the issuance of Lift Dollar (USDL) in the United Arab Emirates. With USDG, Paxos now offers six digital assets to the market, strengthening its global presence in the stablecoin sector.
In August last year, MAS released the final guidelines of its new regulatory framework for digital assets, which aims to guarantee the stability of the value of stablecoins regulated in the country. Key requirements include that these stablecoins be backed by highly liquid, low-risk reserve assets, that companies maintain a minimum capital of one million Singapore dollars (about $754,000), and that essential information about the currencies are publicly available online.
Ho Hern Shin, Deputy Director General of MAS, commented on the role of stablecoins in Singapore's digital context. “The regulatory framework for MAS stablecoins aims to facilitate the use of these currencies as a trusted digital means of exchange and as a bridge between the fiat and digital asset ecosystems,” said Shin.
The MAS must still communicate new details about the implementation of the regulatory framework, which depends on approval by the Singapore parliament. Paxos, with its expansion and strategic partnerships, strengthens the use of stablecoins in the global financial scenario, adapting to local regulations to expand the acceptance of digital assets in corporate and regulated environments.