Paxos Launches USDG Stablecoin to Comply with Singapore’s New Rules  

• Paxos Digital Singapore introduced the USDG stablecoin, tailored to meet the Monetary Authority of Singapore’s stringent regulatory standards.
• The USDG stablecoin initiative benefits from a strategic partnership with DBS Bank, enhancing cash management and custodial services for its reserves.
• The launch plans include expanding USDG availability beyond the Ethereum blockchain, and increasing accessibility across multiple digital platforms.

Paxos Digital Singapore recently unveiled its latest U.S. dollar-backed stablecoin, named Global Dollar (USDG), meticulously designed to conform with the imminent stablecoin regulations in Singapore. This strategic move marks another significant step in Paxos’ drive to augment its portfolio of region-specific stablecoin offerings.

Moreover, the introduction of USDG coincides with a robust partnership with DBS Bank, the largest financial institution in Singapore by assets. This collaboration ensures solid backing in cash management and custodial services essential for maintaining the stablecoin’s reserves. This support is crucial as it bolsters the operational integrity and reliability of USDG in financial transactions.

Paxos strategically positions USDG to cater to the growing demand among enterprises for stable, compliant, and practical digital asset solutions. Ronak Daya, Head of Product at Paxos, highlights that USDG is unique in melding compliance with significant economic incentives for businesses exploring stablecoin utilization.

Significantly, the launch of USDG follows the approval granted in July by the Monetary Authority of Singapore (MAS) to Paxos Singapore for issuing stablecoins. Aligned with the newly established MAS standards, this approval came shortly after the authority finalized its regulatory framework. This framework mandates that stablecoins be backed by highly liquid, low-risk reserve assets and requires issuers like Paxos to uphold a robust transparency standard, facilitating user access to crucial operational data.

elements that will enhance the stability and security of Singapore’s burgeoning digital asset ecosystem.

Paxos plans to extend the availability of USDG beyond its initial launch on the Ethereum blockchain. This expansion will involve introducing the stablecoin on additional blockchain platforms, thereby widening its accessibility and utility. The introduction of USDG as Paxos’ second regional stablecoin, following the earlier launch of Lift Dollar (USDL) in the United Arab Emirates, signifies a strategic pivot towards capturing the regulated market spaces globally.