Paxos to Launch New Stablecoin in Singapore
Date: 2023-11-17 Author: Dima Zakharov Categories: BLOCKCHAIN
Introduction of Paxos' New Venture in Singapore
Paxos, a cryptocurrency broker, has revealed plans for the launch of a new stablecoin tied to the value of the US dollar. To achieve this, the company established Paxos Digital Singapore Pte. Ltd. in Singapore.
MAS Approval and Future Licensing
The newly formed entity has received preliminary approval from the Monetary Authority of Singapore (MAS) to offer services related to digital payment tokens for the city-state's residents. Subsequently, the Singaporean division aims to acquire a full license, expanding its suite of services. To ensure reserve confirmation, the company plans to provide corresponding reports on a monthly basis.
Addressing Global Demand for a Secure Dollar Alternative
Walter Hessert, Chief Strategist at Paxos, noted, "The global demand for the dollar has never been stronger, yet buyers outside the US still find it challenging to invest in the American currency securely, reliably, and under regulatory protection."
Anticipated Growth in the Stablecoin Market
The company's leadership is confident that substantial funds will enter the stablecoin sector in the coming years. Analysts at the brokerage firm Bernstein predict that the market capitalization of stablecoins will surge from $125 billion to $2.8 trillion within just 5 years.
Previous Collaboration and Partnership with PayPal
In August, Paxos collaborated with PayPal to release the PYUSD stablecoin for the payment company, marking a previous step in expanding their stablecoin offerings.
