Paxos Receives Singapore Approval For Offering Digital Payment Services
It was revealed today that Paxos has acquired preliminary authorisation from the Monetary Authority of Singapore to provide digital payment token services. Paxos is one of the rare firms that is at home in both the crypto and traditional financial sectors. Examining some of Paxos’ present activities will help provide light on its potential role as a major payments institution in Singapore.
Stablecoin solutions from Paxos include its own — the one used by Meta—as well as the infrastructure for Binance Dollar BUSD, the third-largest stablecoin with a $18 billion balance. Paxos offers a stablecoin solution. Aside from that, it acts as a middleman for PayPal’s bitcoin exchange.
This means that Paxos may now provide Paxos Crypto Brokerage, stablecoin and custody services in Singapore to Singapore citizens as well as any customers who choose to extend their services to Singapore. Bank of America, Credit Suisse and Instinet are just a few of the institutions using its enterprise blockchain stock settlement solution. At present time, the service is only available in the United States.
It has received $540 million in capital to far, including $300 million in funding in April of last year. Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital, and PayPal Ventures are just a few of the investors on board with this one.
Paxos prides itself on being a corporation that puts regulations first. The New York State Department of Financial Services has already granted it a license. “We believe that the benefits of blockchain can only be realized if solutions are built within regulated frameworks,” stated a spokeswoman for the firm. There are just a few of countries in the world that have a clear regulatory framework for virtual currencies, and Singapore is one of them.