Paxos launches new USD stablecoin with Singapore’s DBS Bank
Quick Take
- On Friday, Paxos introduced its new USD-backed stablecoin named Global Dollar (USDG).
- The new stablecoin will be compliant with Singapore’s regulatory framework.
Blockchain infrastructure firm Paxos announced today Global Dollar (USDG), its new U.S. dollar-backed stablecoin designed to meet Singapore’s upcoming stablecoin regulatory framework.
The stablecoin will be issued by the company’s Singapore arm, Paxos Digital Singapore. At the same time, DBS, the city-state’s largest bank by assets, plans to support Paxos in cash management and custody of USDG reserves as a primary banking partner.
“Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises,” said Ronak Daya, Head of Product at Paxos. “USDG offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.”
For the launch, Paxos Singapore gained approval to issue stablecoins from the Monetary Authority of Singapore (MAS) in July. Upon release, USDG is available on Ethereum, and issuance is planned for other blockchains.
USDG marks Paxos's second localized stablecoin offering, following the launch of Lift Dollar (USDL) in the United Arab Emirates. It is the company’s sixth digital asset launch overall.
Upcoming stablecoin framework
Meanwhile, the MAS released the finalized features of its latest digital asset regulatory framework in August last year. The framework “seeks to ensure a high degree of value stability” for regulated stablecoins in the region.
The regulator's key requirements for local stablecoins are low-risk, highly liquid reserve asset backings, a minimum base capital of one million Singapore dollars ($754,959), and online disclosures containing critical information for holders.
“MAS’ stablecoin regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange, and as a bridge between the fiat and digital asset ecosystems,” MAS Deputy Managing Director Ho Hern Shin wrote in the release.
The MAS has yet to announce further developments regarding enforcing the stablecoin framework, which requires approval from Singapore’s parliament.
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