Paxos Introduces USDG Stablecoin
Blockchain infrastructure firm Paxos has launched its latest stablecoin, the Global Dollar (USDG), which is fully backed by the U.S. dollar. This new digital asset is designed to comply with Singapore’s stringent regulatory framework for stablecoins, highlighting Paxos's dedication to aligning with regional regulations. The issuance of USDG will be managed by Paxos Digital Singapore, the company's local arm that handles regional operations.DBS Bank’s Role and Regulatory Approval
In a significant partnership, DBS Bank, Singapore's largest bank by assets, will support Paxos by overseeing the cash management and custodial duties for USDG reserves. This partnership aims to bolster trust and enhance the stability of the stablecoin in the market. Paxos received regulatory approval from the Monetary Authority of Singapore (MAS) back in July, positioning it well to launch USDG with strong compliance backing. Initially, the stablecoin will be available on the Ethereum blockchain, with future plans to expand to other blockchains for wider adoption.Strategic Market Positioning
USDG is Paxos's second stablecoin created for a specific regional market, following its introduction of Lift Dollar (USDL) in the UAE. This move marks Paxos's sixth digital asset launch, underlining its experience and ongoing efforts in creating compliant and innovative financial products. The entry of USDG into Singapore's market is expected to cater to growing enterprise demand for reliable, regulatory-compliant stablecoin solutions, enhancing adoption and facilitating new use cases across sectors.
Read the full article on
theblock.
