Paxos, a leading stablecoin issuer, has introduced a new token called the “Global Dollar” (USDG), crafted to adhere to the forthcoming stablecoin regulatory framework set by the Monetary Authority of Singapore (MAS). This announcement was made in a press release on October 31.
USDG, issued by Paxos Digital Singapore, is pegged at a 1:1 ratio to the U.S. dollar, with reserves managed by DBS Bank—Southeast Asia’s largest bank by assets. These reserves consist of “high-quality liquid assets,” including U.S. dollar deposits and short-duration U.S. government securities, ensuring a solid backing for the stablecoin.
Initially available on the Ethereum blockchain, Paxos plans to extend USDG’s compatibility to other blockchain platforms. This expansion aligns with the company’s goal of promoting stablecoin adoption worldwide by providing secure, regulated, and redeemable digital assets.
Ronak Daya, Paxos’ head of product, emphasized the rising enterprise demand for stablecoins, noting that compliant options with substantial incentives are currently scarce. He stated that USDG aims to bolster global enterprise adoption by meeting robust regulatory standards, aided by Paxos’ collaboration with DBS Bank.
This launch follows Paxos Digital Singapore receiving full approval from the MAS to provide cryptocurrency services in the region, marking a significant milestone for the firm. With this approval, Paxos gains access to Singapore’s market, complementing its existing licenses for crypto services in the U.S. and UAE.
Founded in 2012 by Charles Cascarilla and Rich Teo, Paxos specializes in regulated blockchain infrastructure and has raised nearly $540 million in funding from prominent investors, including Oak HC/FT, Declaration Partners, and Mithril Capital.
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