Paxos Secures DPT License in Singapore to Issue MAS-Compliant Stablecoin

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Sujha Sundararajan

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Last updated: 

July 1, 2024

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Crypto firm Paxos has received full approval from Monetary Authority of Singapore (MAS) to offer digital payment token (DPT) services.

With the DTP license, Paxos aims to issue stablecoin that aligns with MAS’ upcoming stablecoin framework, official statement read.

Paxos won preliminary nod from the Singapore regulator in November 2023, with in-principal approval. The company said at the time that it would only issue tokens that are subject to oversight by prudential regulators.

“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,” Walter Hessert, Head of Strategy at Paxos, noted.

In August 2023, MAS finalized stablecoin regulatory framework to ensure high price stability for stablecoins regulated in Singapore. The regulator said that only entities that satisfy all requirements under the framework can apply for a “MAS-regulated stablecoins” approval.

Paxos already issues the USDP stablecoin that has a circulating supply of 461.56 million and holds licenses in the US and UAE. Additionally, PayPal’s stablecoin – PYUSD – is also from the same company.

The recent license approval comes at a time when MAS flagged higher terrorism financing risk for DPT service providers. The Ministry of Home Affairs, Ministry of Finance, and Monetary Authority of Singapore jointly issued a statement on Monday, highlighting the conclusions derived from the latest risk assessment.

Paxos Partner With DBS Bank For Cash Management

Additionally, Paxos has selected DBS as primary banking partner for cash management and stablecoin custody. DBS’s solution will help stablecoin issuers meet the robust standards that regulators and customers expect from them, said Evy Theunis, head of digital assets at DBS.

“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.”

Singapore’s multinational DBS bank reported holding $650 million worth Ether in May, flagged as Ethereum “whale” by on-chain firm Nansen.

DBS is no new to crypto and has been offering a slew of services. They include digital asset custody, a trading exchange for security tokens, and a crypto portfolio management app.