Paxos, a prominent blockchain infrastructure firm, has taken a significant step in the global stablecoin market by launching the Global Dollar (USDG), a U.S. dollar-backed stablecoin designed to align with Singapore’s progressive regulatory framework. This new offering, issued through its Singapore subsidiary Paxos Digital Singapore, is fully backed by U.S. dollar reserves held with DBS Bank. 

Source: Paxos

The partnership with DBS, Singapore’s largest bank by assets, signals a strategic move to boost confidence and adoption among both crypto-native users and traditional financial institutions seeking a stable and compliant digital asset solution.

A Step Forward in Regulated Stablecoins

USDG’s launch marks Paxos’s sixth digital asset offering and its second regional stablecoin after introducing the UAE-based Lift Dollar (USDL) earlier this year. For Paxos, USDG represents a significant leap in its journey to establish robust, regulatory-compliant stablecoins that appeal to enterprise-level adoption. The firm announced it had secured MAS approval in July 2024, granting USDG compliance with Singapore’s stablecoin regulatory framework introduced in August.

Ronak Daya, Paxos’s Head of Product, noted the rising interest in stablecoins, stating, “The market is ready for solutions that combine regulatory compliance with genuine economic incentives. USDG, with DBS as a top-tier partner, is positioned to drive stablecoin adoption on a global scale.”

Compliance with MAS Regulatory Framework

Singapore’s MAS has one of the most rigid regulatory frameworks in the world. The aim is to ensure credulity in the digital currency system, with a low-risk reserve for stablecoins and maximum transparency. The USDG is collateralized 1:1 by dollar deposits, short-term U.S. government securities, and other cash-equivalent assets. That meets MAS requirements for consistent and transparent dollar redemption and offers an attractive option for businesses that consider factors like financial stability and regulatory compliance.

Source: The Monetary Authority of Singapore

The MAS framework also outlines essential requirements like minimum base capital for issuers, public disclosures for token holders, and ongoing anti-money laundering (AML) compliance. Such regulations are designed to build user trust in stablecoins as reliable, redeemable digital assets, which USDG fully adheres to.

Why DBS Bank Partnership Matters

Paxos selected DBS Bank, Southeast Asia’s largest and highly regarded bank, as its primary banking partner for USDG. With a reputation for stringent financial security and regulatory compliance, DBS offers an extra layer of trust for USDG, appealing to institutions across both crypto-native and traditional financial sectors. DBS’s role includes managing all USDG reserves, further ensuring that USDG maintains its dollar peg by holding high-quality liquid assets.

Evy Theunis, DBS’s Head of Digital Assets, commented, “Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem.”

Expanding Reach and Blockchain Accessibility

Currently available on the Ethereum blockchain, USDG is planned for future deployment on additional blockchain networks as Paxos expands its digital asset infrastructure. This cross-chain availability will maximize accessibility, enabling individuals and institutions worldwide to access and use USDG.

The strategic launch also aims to partner with major global exchanges, wallets, and financial platforms, positioning USDG for widespread adoption among crypto and traditional institutions. As regulatory clarity around stablecoins grows, this partnership approach will help Paxos capitalize on the increasing demand for compliant, reliable digital assets.

Paxos’s Digital Asset Portfolio and Future Plans

Adding USDG to Paxos’ suite of digital assets extends a list that includes PayPal USD (PYUSD), Pax Dollar, and Pax Gold. In other words, Paxos has forged partnerships with household financial names like PayPal, Mastercard, and Stripe for its blockbuster enterprise of safely minting and enabling regulated digital transactions.

Charles Cascarilla, Paxos CEO, recently emphasized the urgency of U.S. regulatory action on digital assets to keep pace with global leaders such as Singapore. His open letter to U.S. Vice President Kamala Harris highlights Paxos’s vision to advance stablecoin regulation and innovation, warning that regions with proactive digital asset frameworks, like Singapore and the UAE, are poised to attract significant financial and technological capital.

Driving Global Stablecoin Adoption

Paxos’s introduction of USDG in Singapore signals the company’s commitment to stablecoin innovation aligned with international regulatory standards. With DBS Bank’s partnership, USDG is set to be a trusted stablecoin option for global enterprises, bridging traditional finance and digital assets.

This launch positions Paxos as a leading force in the regulated stablecoin market, underscoring its dedication to secure, scalable digital solutions that resonate with businesses and users worldwide. Through USDG, Paxos aims to accelerate stablecoin adoption, catering to enterprises seeking regulated, high-quality digital assets for global financial operations.