Crypto firm Paxos continues its international expansion, now snagging two preliminary approvals in Abu Dhabi.
Paxos has received two in-principle approvals from the Financial Services Regulatory Authority in the Abu Dhabi Global Market to issue stablecoins and offer crypto brokerage and custody services, the company said Wednesday. The preliminary approvals are for two new entities of Paxos within the ADGM.
The full approvals are expected in the first half of next year, a Paxos spokesperson told The Block, adding that those will allow the company to issue new USD-backed as well as other currency-backed stablecoins from Abu Dhabi, although Paxos is currently focused on a new USD-backed stablecoin.
Singapore to Abu Dhabi
The Abu Dhabi expansion plan comes two weeks after Paxos received in-principle approval from the Monetary Authority of Singapore for its new local entity that will launch a new USD-backed stablecoin in the country.
"Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks," Walter Hessert, head of strategy at Paxos, said in a statement. "We will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner."
Paxos' ADGM unit, like its Singapore entity, will enable the company to establish partnerships similar to PayPal in the U.S., the spokesperson said. It will also be able to onboard Abu Dhabi-based customers for its crypto brokerage and custody services.
Paxos was founded in 2012 and is backed by high-profile investors, including Bank of America, Peter Thiel's Founders Fund and Coinbase Ventures. The firm has raised over $540 million in total funding to date and was valued at $2.4 billion during its latest Series D round in 2021.
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