Paxos gets preliminary license in Singapore, plans US dollar-backed stablecoin amid rising global demand for stable digital currencies.
Singapore authorities have granted Paxos, a cryptocurrency brokerage, a preliminary license. While waiting for complete approval, this approval allows Paxos Digital Singapore Pte. Ltd. to begin offering digital payment token services under the Payments Services Act.
Paxos intends to create a US dollar-backed stablecoin in Singapore once completely permitted. "There is a strong global demand for the US dollar, but it is difficult for those outside the US to access it safely and under proper regulations," said Paxos Head of Strategy Walter Hessert. Paxos also publishes monthly reports on the reserves and attestations of its stablecoins.
Increased Interest in Stablecoins
This move coincides with a surge in demand for stablecoins, digital currencies tethered to stable assets such as the US dollar. According to experts, the stablecoin market might grow from $125 billion to $2.8 trillion in five years. Paxos' latest license follows its recent Singapore clearance to provide tokenization, custody, and trading services.