Paxos has announced that its subsidiary, Paxos Digital Singapore, has received approval from the Monetary Authority of Singapore ( MAS ) to issue stablecoins. This authorisation allows Paxos to offer digital payment token services as a major payment institution.

DBS Bank will provide custody for the stablecoin’s reserves. Paxos first obtained a major payment institution license in Singapore in 2022. Subsequently, it established a new entity, which received in-principle approval from MAS in November.

Paxos is recognized for issuing the Paxos dollar, PayPal’s PYUSD stablecoin, and previously, Binance USD. The company also holds a license in the Abu Dhabi Global Market (ADGM). Recently, Paxos introduced a yield-bearing stablecoin targeting customers in Argentina, aimed at providing a stable investment option amidst the devaluation of the Argentine peso.

The upcoming stablecoin launch in Singapore is anticipated to continue this trend of innovation. Adopted by Chainlink Chainlink, a Web3 services platform, has recently announced support for a PYUSD (PayPal’s USD-backed stablecoin issued by Paxos) Price Feed on the Ethereum mainnet. Secured by Chainlink's oracle network, the PYUSD Price Feed provides users with accurate, reliable, and decentralized market data for PYUSD on the blockchain.

This data aids in the creation of secure markets around PYUSD and supports its adoption as a stablecoin for on-chain payments. PYUSD is a stablecoin backed by dollar deposits, US treasuries, and cash equivalents, issued by Paxos. It is transferable on Ethereum and is used as collateral for decentralized finance (DeFi) projects and to facilitate payments.

Chainlink and Paxos are collaborating to advance the use of tokenized real-world assets (RWAs) and to scale on-chain finance globally. Testing enterprise blockchain for tokenised assets In March 2024 Paxos took part alongside Goldman Sachs, BNY Mellon, DRW, Oliver Wyman in Digital Asset’s test of its Canton Network. The Canton pilot involved 15 asset managers, 13 banks, four custodians, and three exchanges.

These entities transacted and settled tokenized assets and managed fund registry, digital cash, repo, securities lending, and margin management transactions. The test included over 350 simulated transactions, demonstrating how a network of interoperable applications can facilitate secure, atomic transactions across various segments of the capital markets value chain. The results highlighted potential benefits, including reduced counterparty and settlement risk, optimized capital, and enabled intraday margin cycles.

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