🔥 Land A High Paying Web3 Job In 90 Days LEARN MORE

Paxos launches USD-backed USDG stablecoin with Singapore’s DBS Bank

In this post:

  • Paxos introduced its new stablecoin, Global Dollar (USDG), which is backed by the US dollar.
  • The new stablecoin will comply with Singapore’s regulatory framework.
  • USDG is already available on the Ethereum blockchain and will be issued on more blockchains soon.

Regulated blockchain infrastructure company Paxos has introduced Global Dollar (USDG). The new U.S. dollar-backed stablecoin is designed to meet Singapore’s upcoming stablecoin regulatory framework.

According to the official announcement, Paxos Digital Singapore Pte. Ltd. is the USDG issuer. In addition, Paxos Global Pte. Ltd. will partner with global exchanges, wallets, and platforms to distribute USDG to individuals and institutions.

The launch comes five months after the entity launched the United Arab Emirates-regulated interest-bearing Lift Dollar (USDL) stablecoin. According to Paxos, USDG complies with MAS’ upcoming stablecoin framework established in August 2023.

Source: Paxos

“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. 

Ronak Daya adds that the “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.”

Paxos enters the stablecoin industry

Paxos Digital Singapore, the Singapore wing of Paxos, received approval for USDG in July from the Monetary Authority of Singapore. At the time, Evy Theunis, head of digital assets at DBS Bank, indicated why the bank partnered with the crypto company:

Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem.

Evy Theunis

Now, USDG is already available on the Ethereum blockchain and will be issued on more blockchains soon. As of now, USDG is the company’s sixth digital asset launch overall.

See also  2024's top performing layer 1 networks: CoinGecko report

Paxos other digital assets include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), which are issued by Paxos Trust Company, LLC, a limited-purpose trust company overseen by the New York Department of Financial Services. 

Stablecoins November market performance

Crypto investors and digital finance enthusiasts have turned to Stablecoins to stabilize their market trades in the US dollar’s stead. 

According to on-chain data from CoinGecko, the global crypto market cap today is $2.47 Trillion. Of that market share, Stablecoins’ market cap is $177 Billion. Paxos intends to add their stablecoins to that share and aid in trade.

The entity has already made plans for global distribution. Paxos said in a statement on X:

USDG is built to power the next wave of global stablecoin adoption, catering to both crypto-native ecosystems and regulated institutions that maintain higher standards of operation.

Paxos

The company plans to work with global crypto exchanges, wallets, and trading platforms to make USDG available to individuals and institutions.

Sygnum Bank, a Swiss crypto bank, said increased regulatory certainty is driving traditional financial institutions to create stablecoins. It said: “Stablecoin providers who are already adhering to the developing regulatory standards are likely to gain the advantage as stablecoin use in real-world transactions grows.”

Not all stablecoins have a legit play in the crypto market. On Oct. 26, the U.S. dollar value of Essence Finance’s decentralized stablecoin, CHI, plunged by more than 90% after rumors emerged that more than $20 million of collateral had been removed.

See also  President Vlad Putin declares that Bitcoin is now 'legal property' in Russia

However, other stablecoins like USDT have remained up to task. Today, USDT reached a $120 billion market cap. In addition, USDT’s market share among centralized exchanges rose to 79.1%, reflecting its dominance in the stablecoin market. 

MAS crypto regulatory framework

As reported, the MAS released the finalized features of its latest digital asset regulatory framework in August 2023. The framework “seeks to ensure a high degree of value stability” for regulated stablecoins in the Asian region.

The regulator’s primary requirements for local stablecoins include low-risk, highly liquid reserve asset backings, a minimum base capital of one million Singapore dollars ($754,959), and online disclosures with important data for holders.

The MAS Deputy Managing Director Ho Hern Shin wrote in the release that, “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.”

Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap

Share link:

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Most read

Loading Most Read articles...

Stay on top of crypto news, get daily updates in your inbox

Editor's choice

Loading Editor's Choice articles...
Cryptopolitan
Subscribe to CryptoPolitan