Paxos was also one of the first crypto firms to be regulated by the New York Department of Financial Services (NYDFS).
Only a handful of firms have been able to attain a crypto license from Singapore's MAS
Photo Credit: Unsplash/ CHUTTERSNAP
Paxos, the regulated blockchain infrastructure platform that issues a stablecoin and provides crypto services for the likes of PayPal, Meta has announced that it has received in-principle approval from the Monetary Authority of Singapore (MAS), the central bank and financial regulatory authority of Singapore, to operate digital payments token services in the country. Paxos confirms that the license allows it to offer Paxos Crypto Brokerage, stablecoin, and custody services in Singapore, expanding its services to Singapore residents and any clients that wish to expand to the region.
Paxos provides a stablecoin solution that includes its own stablecoin named Paxos' Pax Dollar (USDP) and provides the infrastructure for the Binance Dollar BUSD, which is currently the third-largest stablecoin. It also provides the brokerage service for PayPal's cryptocurrency offering.
On the institutional side, it has an enterprise blockchain stock settlement service with clients, which include a number of reputed names like Bank of America, Credit Suisse, and Instinet. However, this is a US-only service at this stage.
The company has raised $540 million (roughly Rs. 4,140 crore) in funding to date, including $300 million (roughly Rs. 2,300 crore) in April last year. Backers include Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.
Commenting on the development, Rich Teo, co-founder and CEO, Paxos Asia stated, "We believe it's (regulatory oversight) the only way for consumers and financial institutions alike to truly experience the benefits of the blockchain and digital assets. We're excited to have MAS as our regulator, and with their oversight, we'll be able to safely accelerate consumer adoption of digital assets globally by powering regulated solutions for the world's biggest enterprises."
As per a Nikkei report from December 2021, Paxos is one of the few firms to acquire a crypto license from MAS. More than 100 companies that applied for such a license have either been turned down by MAS or withdrawn their applications. Other firms that have received crypto licenses in the country include DBS Vickers Securities, Sygnum, and Independent Reserve.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.