Darius Baruo
Nov 01, 2024 10:22
Paxos introduces USDG, a US dollar-backed stablecoin, compliant with Singapore’s MAS framework. Partnering with DBS Bank for secure reserve management, USDG aims to enhance global stablecoin adoption.
Paxos, a leading entity in blockchain and tokenization infrastructure, has officially launched the Global Dollar (USDG), a new US dollar-backed stablecoin. This development, announced on November 1, 2024, is regulated under the Monetary Authority of Singapore (MAS), marking a strategic step towards global stablecoin adoption, according to Paxos.
USDG: A New Era of Stablecoins
USDG is designed to meet the needs of regulated institutions by maintaining high operational standards. It is available on the Ethereum blockchain with plans to expand to other blockchains shortly. Paxos ensures that USDG is backed by high-quality liquid assets, such as US dollar deposits and short-duration US Government securities, maintaining a 1:1 parity with the US dollar. This allows users to redeem their tokens for fiat currency at any time.
Strategic Partnerships and Compliance
The stablecoin’s introduction is complemented by a partnership with DBS Bank, Southeast Asia’s largest bank, recognized as the Safest Bank in Asia for 16 consecutive years. DBS will manage the cash reserves backing USDG, further solidifying its security and trustworthiness. This collaboration is expected to drive innovation and adoption of stablecoins on a global scale.
Ronak Daya, Head of Product at Paxos, emphasized the increasing enterprise interest in stablecoins and the market’s need for a solution that combines regulatory compliance with economic incentives. He stated that USDG provides a trusted solution with a top-tier banking partner, facilitating stablecoin innovation at a global level.
Expanding Paxos’ Digital Asset Portfolio
USDG is the sixth digital asset issued by Paxos, following successful launches of other digital currencies like PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). These assets are issued by Paxos Trust Company, LLC, a New York Department of Financial Services-regulated entity, and its UAE-based affiliate, Paxos International, regulated by Abu Dhabi Global Market’s FSRA.
Paxos continues to strengthen its position as a trusted partner for enterprises globally, facilitating the tokenization, custody, trading, and settlement of digital assets. The company is prudentially regulated in the US, Singapore, and Abu Dhabi, further underscoring its commitment to compliance and security in the digital asset space.
Broader Implications for the Financial System
Paxos’ introduction of USDG aligns with its mission to replatform the financial system, enabling instantaneous asset movement worldwide. By partnering with major global enterprises like PayPal, Mastercard, and Nubank, Paxos is at the forefront of creating a more efficient and accessible financial infrastructure.
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