Paxos Obtains Major Payment Institution License in Singapore to Offer Digital Payment Token Services

This authorisation allows Paxos to offer digital payment token services as a major payment institution. DBS Bank will provide custody for the stablecoin’s reserves.

Paxos, a major payment institution licensed in Singapore, will introduce a stablecoin in the city-state.

DBS Bank will serve as the custodian for the stablecoin’s reserves.

Paxos is authorized to offer digital payment token services in Singapore.

The company had earlier received a major payment institution license in 2022.

Following this, Paxos established a new entity in Singapore, which obtained in-principle approval from the Monetary Authority of Singapore (MAS) in November.

The upcoming stablecoin launch is part of a broader trend of innovation in the Singapore Web3 scene.

Chainlink, a Web3 services platform, announced support for a PYUSD (PayPal’s USD-backed stablecoin issued by Paxos) Price Feed on the Ethereum mainnet.

The PYUSD Price Feed is secured by Chainlink’s oracle network and provides users with precise, reliable, and decentralized market data for PYUSD on the blockchain.

This data will facilitate the creation of secure markets around PYUSD and support its adoption as a stablecoin for on-chain payments.

PYUSD is a stablecoin issued by Paxos and backed by dollar deposits, US treasuries, and cash equivalents.

It is designed to maintain a 1:1 peg to the US dollar and is available for trading on decentralized exchanges.

In addition to serving as a medium of exchange, PYUSD can also be used as collateral for decentralized finance (DeFi) projects and to facilitate payments.

Chainlink and Paxos are working together to advance the use of tokenized real-world assets (RWAs) and to scale on-chain finance globally.

In March 2024, Paxos participated in a test of Digital Asset’s Canton Network, along with Goldman Sachs, BNY Mellon, DRW, and Oliver Wyman.

The Canton pilot involved 15 asset managers, 13 banks, four custodians, and three exchanges, transacting and settling tokenized assets and managing fund registry, digital cash, repo, securities lending, and margin management transactions.

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