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Stablecoin issuer Paxos has picked DBS Bank, Southeast Asia's largest bank by assets, as its primary banking partner, which will provide cash management and custody services for Paxos' stablecoin reserves, according to an announcement on Tuesday.
This announcement comes on the heels of Paxos receiving full approval from the Monetary Authority of Singapore (MAS) in November 2022 to offer digital payment token services as a Major Payments Institution. Paxos' regulatory approval from MAS allows them to issue stablecoins compliant with Singapore's upcoming framework.
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Paxos' choice of DBS is a strategic move that leverages the bank's reputation as a leader in banking innovation. "DBS is an ideal partner for Paxos as the company builds and launches cutting-edge, secure and regulated financial solutions," Paxos said.
"Stablecoins issued in accordance with standards set by a regulator like MAS - known for its rigorous regulatory standards - represent a significant step towards democratizing access to commerce and financial services. Receiving approval from MAS is an important step for Paxos and our global enterprise partners to safely offer access to US dollars to more users around the world," Walter Hessert, head of strategy at Paxos, said in the announcement.
Founded in 2012, Paxos offers a variety of blockchain-based solutions, including its flagship product, USDP. The company used to issue the Binance USD (BUSD) stablecoin, which was phased out in 2023, under pressure from US regulators.
The company also issues the Pax Dollar (USDP), PayPal USD (PYUSD) and earlier this year launched the Lift Dollar (USDL) in the UAE.
