Paxos partners with DBS Bank to launch USDG stablecoin in Singapore
Leading blockchain platform Paxos has unveiled Global Dollar (USDG), a stablecoin backed by the US dollar that complies significantly with MAS's upcoming stablecoin framework.
(1/4) Today marks an exciting milestone in Paxos’ history. We’re pleased to introduce @global_dollar, the latest US dollar-backed stablecoin issued by Paxos. This is the 6th trusted digital asset from Paxos and its affiliates.
— Paxos (@Paxos) October 31, 2024
View the official press release here:… pic.twitter.com/G7fb9Ny9bT
The primary objective of MAS' stablecoin regulatory framework is to make stablecoins a more legitimate digital medium of exchange and a link between the ecosystems of digital assets and fiat, according to a statement by Ho Hern Shin, MAS Deputy Managing Director.
USDG is currently accessible on Ethereum and will soon be issued on additional blockchains, according to a statement by Paxos. GitHub and Etherscan are two ways to view USDG's smart contract.
Introducing Global Dollar (USDG)
USDG is a new reliable and safe stablecoin that will speed up the adoption of stablecoins. It is intended to meet the requirements of institutions under regulation that maintain higher operating standards. USDG is issued by Paxos Digital Singapore, which is subject to Monetary Authority of Singapore (MAS) regulation. The USDG will be distributed to individuals and institutions by Paxos Global, an affiliate of Paxos, in collaboration with international exchanges, wallets, and platforms.
Paxos must only hold high-quality liquid assets to back USDG, such as US dollar deposits, short-term United States government securities, and other cash equivalents. As a result, customers can always exchange their tokens for fiat, and USDG will always maintain 1:1 parity with the US dollar, the post added.
Launch of USDG in partnership with DBS
The main banking partner of Paxos for cash management and USDG reserve custody will be DBS Bank, the largest bank in Southeast Asia by assets and named the Safest Bank in Asia for 16 years running by Global Finance.
Head of Product at Paxos, Ronak Daya, said the company is thrilled to launch the Global Dollar (USDG), which offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.
Daya added that 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.
Dollars supporting USDG will be kept in reserves and managed by Paxos Digital Singapore through DBS.
Paxos digital assets
Paxos has a proven track record of building blockchain solutions that leaders in the financial sector can trust. USDG is the first digital asset issued by Paxos Digital Singapore and the sixth digital asset issued by Paxos. Its digital assets, which are issued by Paxos Trust, a company under the supervision of the New York Department of Financial Services, include PayPal USD (PYUSD), Pax Gold (PAXG), and Pax Dollar (USDP).
The yield-bearing stablecoin Lift Dollar (USDL) is issued by Paxos International, a Paxos affiliate with headquarters in the United Arab Emirates that is overseen by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM). Under the highest levels of regulatory supervision, each of these assets offers users a quality, 1:1 asset parity.
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