Paxos obtains Singapore MPI license, partners with DBS Bank to issue stablecoin

The stablecoin issuer Paxos announced that it has secured full approval from the Monetary Authority of Singapore (MAS) to offer digital payment token services and has partnered with DBS Bank to meet its cash management and custody needs for stablecoin reserves.

Paxos Obtains Singapore MPI License

According to the MAS website, to obtain an MPI (Major Payment Institution) license, companies must have a base capital of 250,000 Singapore dollars and meet criteria such as having a "permanent place of business or registered office" in Singapore.

As of now, a total of 21 companies engaged in cryptocurrency services or digital payment token services have obtained the Singapore MPI license, including Blockchain.com, Circle, Coinbase, Ripple, XREX, among others.

Paxos has obtained licenses for its cross-border remittance services and digital payment token services.

Paxos also announced that DBS Bank will become its primary banking partner for cash management and stablecoin reserve custody.

Countries Tighten Regulations, Stablecoin Issuers Hasten License Acquisition

Paxos stated that with approval, Singapore becomes the third market, after the United States and the United Arab Emirates, where Paxos and its affiliates are authorized to issue stablecoins, demonstrating Paxos' commitment to expanding opportunities for regulated, secure stablecoins globally. This also highlights that it is possible for a company to issue and operate stablecoins under careful regulation when dedicated to consumer protection.

Stablecoin issuer Circle also announced yesterday that it has become the first MiCA-compliant stablecoin issuer. Japan, the United States, the United Kingdom, Singapore, Hong Kong, the UAE, Brazil, and many other major markets are also drafting legislation to regulate stablecoin issuance. As countries intensify regulatory efforts, stablecoin issuers are all striving to obtain regulatory licenses to avoid being excluded from the market.

Circle becoming the first MiCA-compliant stablecoin issuer, will Tether's leading position be challenged?