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Paxos Gets Singapore Approval for Its Stablecoin
Approval granted by Singapore to Paxos for the release of his stable currency marks a turning point in the evolution of regulated cryptocurrencies.
This event confirms the strict adherence to international standards financial regulationFurthermore, it lays the foundation for a reliable and secure environment for investors and users of cryptocurrencies in Asia and beyond.
Furthermore, the strategic partnership with DBS for the custody of the underlying reserves, the stablecoin underscores the commitment to security and transparency in the emerging digital finance sector.
Let’s see all the details below.
Monetary Authority of Singapore Leads Stablecoin Framework: Paxos Milestone
As anticipated, Paxos, a company specializing in digital assets, has received the green light from the Monetary Authority of Singapore to offer digital payment token services, paving the way for the issuance of stablecoins.
DBSSingapore’s largest bank will partner with Paxos to manage liquidity and store stablecoin reserves.
On Monday, Paxos announced that it has received full approval from the Monetary Authority of Singapore, making it operational in its third jurisdiction.
Paxos’ main products include PayPal USD (PYUSD) and Pax Dollar (USDP) and the partnership with DBS will ensure safe and efficient management of their reserves.
Last year, Singapore introduced a regulatory framework for stablecoins, requiring issuers to meet stringent stability and redemption requirements.
This new regulatory framework is designed to ensure the safety and user confidence in the stablecoin market. Headquartered in New York, Paxos is already licensed to operate in the state of New York and the United Arab Emirates.
The expansion into Singapore represents a significant step forward for the company, consolidate its global presence and strengthen investor confidence in stablecoins as safe and reliable financial instruments.
Circle: First Company to Obtain EU EMI License for Stablecoins
In addition to Paxos, there are other important news regarding stablecoins.
Circleglobal stablecoin issuer, has achieved a major milestone by becoming the first company to obtain an Electronic Money Institution (EMI) license in the European Union.
This license is essential to offer cryptocurrencies pegged to the dollar and the euro in the EU according to the new regulation of cryptocurrency markets (Not).
The EMI license positions Circle, whose USDC is the second largest stablecoin after Bind U.S. dollarin a favorable position to expand its market share among the 450 million inhabitants of the 27 member countries of the European Union.
Let us remember that stablecoins are fundamental in the digital assets market, facilitating trades on exchanges and finding more and more applications in transactions and remittances.
Circle’s USDC is currently worth $32 billion, while the gap with Tether’s USDT, which stands at $110 billion, continues to widen.
Thanks to the license granted by the French banking regulator, Circle Mint France will issue its own stablecoin EURCdenominated in euros, directly in the EU. In addition, it will also handle the issuance of USDC from the same institution.
This move follows the implementation of the MiCA stablecoin regulations on June 30, which led some cryptocurrency exchanges to delist euro-denominated stablecoins, such as Tether’s EURT.
MiCA’s global approach to stablecoins was spurred by the possibility of large technology companies like Half could enter the financial markets with projects like Diem (formerly Libra).
This led to five years of concerted political development in Europe, according to Dante AwayHead of Policy at Circle, which was involved in the Libra project.