Paxos, issuer of the USDP stablecoin, can offer crypto products and services in Singapore after securing the license under the nation’s Payment Services Act.
The New York-based company announced the approval early Wednesday (Singapore time), saying in a press release that the license would allow it to offer “digital asset and blockchain products and services” to companies headquartered in the nation.
This includes tokenization, custody and trade services, the release said. Paxos is perhaps best known for issuing the Paxos Dollar (USDP), which currently enjoys a roughly $900 million market capitalization.
The Payment Services Act, a law passed in 2019, regulates payment systems and providers in the country, allowing the Monetary Authority of Singapore (MAS) to better oversee these entities, including certain crypto companies.
In a statement, Paxos Asia CEO Rich Teo said the company was one of the first U.S.-based crypto firms to receive the license.
“From the start, we’ve been committed to innovating within regulatory frameworks,” he said. “We believe blockchain and digital assets will revolutionize finance for everyone around the world, but development of this technology must have clear oversight and consumer protections. 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 in partnership with the world’s biggest enterprises.”
Singapore has promised to crack down on malignant actors, and some companies – like Binance and the now-bankrupt Three Arrows Capital – have left the country. Still others hope to continue operations through new licenses.
Crypto exchange Coinbase, also a U.S.-based firm, secured a digital payment token license in Singapore last month, alongside another 17 companies.
MAS, which is also Singapore’s central bank, proposed fresh stablecoin rules last week, including setting reserve and capital requirements and a ban on lending and other activities. These proposals are open to public comment through next month.