Paxos is partnering with Singapore-based DBS to launch a new stablecoin

Blockchain infrastructure company Paxos has launched a new stablecoin called Global Dollar (USDG) in collaboration with Singaporean bank DBS. This development comes four months after Paxos received approval to offer digital payment token services as a Major Payments Institution (MPI).

Paxos USDG corresponds to the upcoming Singaporean regime

In a press release on November 1, Paxos announced that the new stablecoin USDG would be issued by its Singapore subsidiary under the supervision of the Monetary Authority of Singapore (MAS).

Paxos describes USDG as a dollar-pegged stablecoin created to target regulated institutions under strict standards of accountability and security. The stablecoin will be issued on Ethereum, with upcoming expansions to other blockchains.

Notably, USDG is designed to comply with the upcoming Singapore stablecoin regulatory framework announced back in August 2023. In accordance with the regulations established by MAS, USDG is expected to comply with certain standards regarding stability of value, capital requirements, redemption and disclosure.

These regulations include, but are not limited to, holding only low-risk, highly liquid assets in reserve, maintaining a registered capital of $1 million, and timely repayment within a maximum of five days to ensure the security and credibility of all MAS-regulated stablecoins .

Commenting on the launch of USDG, Ronak Daya, Head of Product at Paxos, highlighted the potential of the new stablecoin to bring a new perspective to the market in terms of institutional engagement.

Daya says:

Corporate interest in stablecoins has never been greater, but the market is missing a solution that combines regulatory compliance with real economic incentives for companies.

With the launch of USDG, Paxos expands its list of operational stablecoins such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). The blockchain company also served as the issuer of the Binance stablecoin BUSD before the New York Department of Financial Services (NYDFS) issued a cease-and-desist order.

DBS Bank manages the USDG reserve

As mentioned earlier, DBS Bank, the largest bank in Singapore by assets, is Paxos' partner in the USDG stablecoin project. In particular, DBS is expected to act as a custodian of USDG reserves and a key banking partner for cash management.

With this agreement, DBS Bank further expands its influence in the digital space amid growing global interest in the emerging industry. In addition to USDG, DBS also operates the DBS Digital Exchange, a crypto trading platform, and is a key partner of the Sandbox Metaverse project.

Featured image from Bazaarvoice, chart from Tradingview