- Paxos launches USDG, a US dollar-backed stablecoin, in Singapore.
- USDG’s reserves are managed by DBS Bank, ensuring high compliance standards.
Paxos has officially launched the Global Dollar (USDG), a US dollar-backed stablecoin, in Singapore. This move aligns with the Monetary Authority of Singapore’s (MAS) regulatory framework. Furthermore, the stablecoin’s reserves will be managed by DBS Bank, Southeast Asia’s largest bank, which ensures high compliance with financial standards.
Initially, USDG will be available on the Ethereum blockchain, with plans to integrate it into additional blockchains soon. By adhering to MAS’s strict regulations, USDG aims to enhance enterprise adoption of stablecoins. The stablecoin will be backed 1:1 by high-quality liquid assets, including US dollar deposits and short-duration government securities.
Paxos’ Partnership with DBS Bank
According to Paxos Head of Product Ronak Daya, enterprise interest in stablecoins has surged. However, the market lacks compliant solutions that offer economic incentives. Thus, USDG aims to fill this gap by providing a trusted solution alongside DBS Bank, fostering innovation and enterprise adoption globally.
The launch follows a recent MAS announcement, which outlined the requirements for stablecoin issuers in Singapore. Notably, stablecoin payments in the region reached a remarkable $1 billion in Q2, showcasing a significant rise from $161 million in 2023. This growth highlights the efficiency and cost-effectiveness of stablecoins, which facilitate faster transactions.
Moreover, Paxos has obtained full approval from MAS, enabling it to provide crypto services. This marks a pivotal step in building trust and stability within the digital asset landscape. The partnership with DBS Bank reinforces USDG’s credibility, attracting both crypto-native businesses and traditional financial institutions.
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