As a seasoned crypto investor with over a decade of experience navigating the ever-evolving digital asset landscape, I find the launch of Paxos’ Global Dollar (USDG) an exciting development. The emphasis on compliance and strong regulatory standards is music to my ears, as it signals a maturing market that’s finally taking steps towards mainstream adoption.
Paxos, the stablecoin issuer, has unveiled a new digital currency called “Global Dollar,” which is designed to conform substantially to the regulatory guidelines of MAS’ forthcoming stablecoin framework.
On October 31st, as reported in a recent press release, the digital assets firm Paxos has introduced a new type of stablecoin called Global Dollar (USDG). This stablecoin is specifically designed to adhere to the rigorous compliance guidelines established by the Monetary Authority of Singapore. The move comes prior to their anticipated regulatory structure for stablecoins.
USDG, a digital currency issued by Paxos Digital Singapore, maintains a value equivalent to one U.S. dollar. The reserves supporting this parity are kept in secure liquid assets like U.S. dollar deposits, short-term U.S. Government bonds, and other cash equivalents. DBS Bank, Southeast Asia’s leading bank by total assets, is responsible for managing these reserves.
Initially introduced on the Ethereum blockchain, USDG aims to broaden its presence across various blockchains, in line with Paxos’ ambition to foster worldwide adoption of stablecoins. This goal is achieved by offering regulated, secure, and exchangeable assets, as stated in the press release.
As a researcher, I’d like to highlight my observation: Ronak Daya, the product head at Paxos, pointed out that the demand for stablecoins from enterprises is higher than ever, but options that are both compliant and offer substantial incentives are scarce. He further emphasized that USDG, a product developed by Paxos, aims to boost global enterprise adoption. This digital currency is backed by robust regulatory standards and benefits from its partnership with DBS Bank.
A few months following the complete approval of its Singaporean branch, Paxos Digital Singapore by the Monetary Authority of Singapore, the company is now authorized to provide cryptocurrency services in the region. This approval provides the stablecoin firm with access to a third market, having already secured licenses for crypto-related services in the U.S. and UAE.
Established in 2012 by Charles Cascarilla and Rich Teo, Paxos specializes in creating a blockchain infrastructure that adheres to regulatory standards. The company has successfully secured approximately $540 million in funding across various investment rounds, with notable contributors such as Oak HC/FT, Declaration Partners, Mithril Capital, and others, joining the ranks.
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2024-11-01 11:30