Paxos unveils USDG stablecoin compliant to Singapore’s upcoming regulatory framework

Stablecoin issuer Paxos has announced a new token called “Global Dollar” that is “largely compatible with MAS’s upcoming stablecoin framework.”

Digital asset company Paxos has launched Global Dollar (USDG), a new stablecoin designed to meet stringent compliance standards set by the Monetary Authority of Singapore ahead of its anticipated regulatory framework for stablecoins, according to a press release on Thursday, October 31.

USDG issued by Paxos Digital Singapore is said to be pegged 1:1 to the US dollar, with reserves held in “high-quality liquid assets” such as “US dollar deposits, short-term US Government bonds” and similar cash equivalents. It is managed by DBS Bank, Southeast Asia’s largest bank by assets.

Initially available on the Ethereum blockchain, USDG is planned to be expanded to other blockchains, supporting Paxos’ goal of advancing stablecoin adoption globally by offering regulated, secure and redeemable assets, the press release said.

Paxos Product Manager Ronak Daya stated that institutional stablecoin demand is at an all-time high, but compatible options with meaningful incentives remain limited. He added that USDG is designed to drive institutional adoption globally, supported by strong regulatory standards and Paxos’ partnership with DBS Bank.

The launch comes just months after Paxos’ Singapore arm, Paxos Digital Singapore, received full approval from the Monetary Authority of Singapore to offer crypto services in the region. The approval gives the stablecoin company third market access after Paxos received licenses to offer crypto-related services in the US and UAE.

Founded in 2012 by Charles Cascarilla and Rich Teo, Paxos focuses on regulated blockchain infrastructure. The firm has raised approximately $540 million in financing from multiple investors, including Oak HC/FT, Declaration Partners and Mithril Capital.