Key Takeaways
- Paxos launches USDG, a U.S. dollar-backed stablecoin in Singapore that aligns with MAS regulations.
- USDG is Paxos’ sixth digital asset, following partnerships with PayPal and the UAE.
- Paxos has partnered with DBS Bank to provide banking and custody services for the new stablecoin.
Paxos, a leading regulated blockchain and tokenization infrastructure platform, has introduced Global Dollar (USDG), a United States dollar-backed stablecoin in Singapore.
The new stablecoin, the company’s sixth such offering, complies with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin framework.
Partnering With DBS Bank
To ensure the secure management of USDG reserves, Paxos has partnered with DBS Bank as its primary banking partner for cash management and custody. All U.S. dollars backing USDG will be held in reserve and managed by Paxos Digital Singapore via DBS.
USDG is backed 1:1 with the U.S. dollar through dollar deposits, short-duration U.S. government securities, and other cash-equivalent alternatives. This 1:1 issuance guarantee allows users to exchange their tokens for equivalent dollar value, providing a stable store of value.
USDG conforms to the future stablecoin framework established by MAS in August 2023. As a result, USDG is currently accessible on the Ethereum blockchain and will be accessible on more blockchains as regulations evolve.
Ronak Daya, Head of Product at Paxos, said:
“Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises.
Daya expressed that USDG is built to power the next wave of global stablecoin adoption, catering to both crypto-native ecosystems and regulated institutions that maintain higher standards of operation.
Expanding Paxos’ Digital Asset Offerings
With the launch of USDG, Paxos expands its digital asset offerings to six, including PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG).
Paxos has a proven track record of partnering with top international businesses, including PayPal, Mastercard, Mercado Libre, Interactive Brokers, and Nubank, to offer tokenization, custody, and trade assets.
Before USDG, Paxos launched the United Arab Emirates-regulated interest-bearing Lift Dollar (USDL) stablecoin.
Paxos also previously issued Binance’s stablecoin, BUSD, before the New York Department of Financial Services (NYDFS) issued a cease-and-desist order against its issuance.
On July 9, Paxos received a formal termination notice from the SEC stating that it would not recommend enforcement action against BUSD.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
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