Global Dollar will comply with the framework from the Monetary Authority of Singapore.
Blockchain platform provider Paxos has introduced a U.S. dollar-backed stablecoin, Global Dollar (USDG), that will comply with the upcoming stablecoin framework from the Monetary Authority of Singapore (MAS), Singapore’s central bank and integrated financial regulator.
Paxos Digital Singapore Pte. Ltd. is the issuer of USDG and is regulated by MAS officials.
“Paxos’s affiliate, Paxos Global Pte. Ltd., will partner with global exchanges, wallets and platforms to distribute USDG to individuals and institutions,” officials say. “The smart contract of USDG can be viewed via Etherscan and GitHub. Businesses interested in learning more about Global Dollar can contact the team at www.globaldollar.com.”
DBS Bank will serve as Paxos’ primary banking partner for cash management and custody of USDG reserves, officials say. “Dollars backing USDG will be held in reserve and managed by Paxos Digital Singapore via DBS.”
Paxos, which also supports tokenization infrastructures, reports that USDG “is designed to support the needs of regulated institutions that maintain higher standards of operation,” according to the announcement.
“USDG is available today on Ethereum and will be issued on more blockchains in the near term. Paxos is required to hold only high-quality liquid assets to back USDG — U.S. dollar deposits, short-duration U.S. Government securities, and other such cash equivalents. This ensures USDG maintains 1:1 parity with the US dollar and consumers can redeem their tokens for fiat at all times,” Paxos adds.
Officials at Paxos say “USDG represents the sixth digital asset to be successfully issued by Paxos, the first from Paxos Digital Singapore. Its digital assets include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), which are issued by Paxos Trust Company, LLC, a limited-purpose trust company overseen by the New York Department of Financial Services.”
In addition, Paxos International, “a UAE-based affiliate of Paxos regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), issues the yield-bearing stablecoin Lift Dollar (USDL). Each of these assets provides users with a quality, 1:1 asset parity overseen by the highest levels of regulatory oversight.”
“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,” says Ronak Daya, head of product at Paxos, in a prepared statement.
Officials say Paxos works with global enterprises to facilitate tokenization, custody, and asset trading services.
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