Paxos has, in conjunction with DBS Bank introduced USDG. This stablecoin is fully backed up by US Dollars and Singapore-approved.
A 31 October announcement stated that USDG would be available soon on other blockchains as long as the regulations permit. Paxos describes USDG as stablecoin designed for “crypto native ecosystems” and “regulated institutions.”
Through dollar deposits, US Government securities of short duration, and equivalent cash, the collaboration with DBS Bank provides customers with a 1:1 redemption.
Ronak Daya is the Head of Product for Paxos. He said that USDG was created because there wasn’t a stablecoin on the market which “combines compliance with economic incentives and real regulatory requirements”
USDG is a trustworthy solution that has a leading banking partner, DBS. This will drive innovation in stablecoins and global enterprise adoption.
Paxos has stated that they plan to work with international exchanges, wallets and trading platforms in order to make the stablecoin available globally.
In July the company received USDG approval from the Monetary Authority of Singapore. This allowed Paxos Digital Singapore to launch the stablecoin.
DBS offered custodial service to the stablecoin issuing company at the time. The head of digital assets, Evy theunis, claimed that DBS wants to help stable coin issues meet “the rigorous standards regulators, customers, and the public expect.”
Paxos consolidates its position in the stablecoin industry
Paxos, over the past few years, has been focused on developing its stablecoin market and expanding its existing markets.
The launch of USDG is part Paxos’ continued expansion in regulated stablecoins markets. USDG marks its second regional offering after the UAE’s lift dollar (USDL).
The company, through Paxos International, its UAE-regulated subsidiary, launched USDL in June.
The US dollar is the only backing for this stablecoin, and its reserves are held in US Treasury Bills or cash equivalents.
The daily yields are directly distributed to the holders’ wallets. This ensures a constant return.
Paxos has introduced the wUSDL version of USDL on Injective’s blockchain.
The Injective variant lets users participate in DeFi protocols, allowing holders to gain yields in DeFi environments.
Paxos, which is expanding its presence in the payments sector, recently released a payment platform for fintech companies and payment service providers. The platform allows PSPs and fintech firms to seamlessly integrate stablecoin options, allowing businesses to accept stablecoins from their customers.
Stripe, the leading global payment processor adopted Paxos’ platform first, and implemented it in its “Pay with Crypto” offering, which streamlines stablecoin acceptability for merchants.
Paxos, in addition to USDG and USDL has also developed four stablecoins: PayPal USD (PYUSD), Pax Dollars (USDP) and Pax Golds (PAXG). The company is licensed to conduct business in Singapore, United States and the UAE.
The post Paxos Partners with DBS Bank in Singapore to Launch Regulated Stablecoin may be updated as new information becomes available.
