Stablecoin issuer Paxos has announced a new token dubbed “Global Dollar” that is “substantively compliant with MAS’ upcoming stablecoin framework.”
Digital assets company Paxos has launched a new stablecoin, Global Dollar (USDG), designed to meet stringent compliance standards set by the Monetary Authority of Singapore ahead of its anticipated regulatory framework for stablecoins, per a Thursday press release, on Oct. 31.
Issued by Paxos Digital Singapore, USDG is said to be pegged 1:1 to the U.S. dollar, with reserves held in “high-quality liquid assets” such as “U.S. dollar deposits, short duration U.S. Government securities” and other such cash equivalents, which are managed by DBS Bank, Southeast Asia’s largest bank by assets.
Available initially on the Ethereum blockchain, USDG is set to expand to other blockchains, supporting Paxos’ objective to advance stablecoin adoption globally by offering regulated, secure, and redeemable assets, the press release reads.
Ronak Daya, head of product at Paxos, noted that enterprise demand for stablecoins is at an all-time high, yet compliant options with meaningful incentives remain limited. He added that USDG is designed to drive enterprise adoption globally, backed by strong regulatory standards and Paxos’ partnership with DBS Bank.
The launch comes a few months after Paxos’ Singaporean arm, Paxos Digital Singapore, received full approval from the Monetary Authority of Singapore to offer crypto services in the region. The approval gave the stablecoin company access to the third market after Paxos obtained licenses to offer crypto-related services in the U.S. and UAE.
Founded in 2012 by Charles Cascarilla and Rich Teo, Paxos focuses on regulated blockchain infrastructure. The firm has raised nearly $540 million in funding rounds from multiple investors, including Oak HC/FT, Declaration Partners, and Mithril Capital, among others.
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