Paxos will launch a new stablecoin pegged to the U.S. dollar.
The infrastructure blockchain company Paxos has received preliminary approval from MAS to issue a new "stablecoin" pegged to the U.S. dollar.
According to the statement, the asset is fully backed by U.S. currency and its cash equivalents. The firm has committed to undergo monthly audits and provide reports on reserves.
MAS recognized the stablecoin as compliant with the regulator's proposed regulatory framework even before its main provisions come into effect, as stated in the press release.
"The global demand for the U.S. dollar has never been stronger, but consumers outside the United States still find it challenging to obtain the currency in a safe and reliable manner under the protection of regulatory authorities," emphasized Walter Hessert, Head of Strategic Affairs at Paxos.
The company also adheres to strict AML and KYC standards established by the authorities of Singapore.
In 2022, Paxos became the first U.S. blockchain platform to obtain a MAS license for providing digital payment token services.
On February 10, 2023, the New York State Department of Financial Services initiated an investigation into the company. Later, the regulator ordered Paxos to cease the issuance of BUSD.
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