Paxos, a crypto brokerage, has secured a provisional license from the Monetary Authority of Singapore to provide digital payment token services, as stated in their recent announcement. This preliminary nod for the newly established Paxos Digital Singapore Pte. Ltd. enables the company to operate under the Payments Services Act (PSA) while it awaits full regulatory approval. Once fully authorized, Paxos plans to collaborate with corporate clients to launch a U.S. dollar-backed stablecoin.
Walter Hessert, Paxos’ Head of Strategy, highlighted the growing global demand for the U.S. dollar, noting the challenges non-U.S. consumers face in accessing dollars in a safe, reliable, and regulated manner. The firm anticipates that this new offering will attract more customers, especially with the stablecoin market projected to expand from $125 billion to $2.8 trillion over the next five years, according to estimates from brokerage firm Bernstein.
This development marks a significant step for Paxos in Singapore, coming a year after the company first obtained a license to provide tokenization, custody, and trading services under the same legislation.