Paxos Partners with Singapore’s DBS Bank to Launch New Stablecoin, Global Dollar (USDG)

Paxos has unveiled its latest U.S. dollar-backed stablecoin, Global Dollar (USDG), tailored to align with Singapore’s upcoming stablecoin regulations. 

The newly launched stablecoin was introduced by Paxos Digital Singapore, the company’s Singapore subsidiary. It marks Paxos’ continued expansion of localized stablecoin offerings. 

(1/4) Today marks an exciting milestone in Paxos’ history. We’re pleased to introduce @global_dollar, the latest US dollar-backed stablecoin issued by Paxos. This is the 6th trusted digital asset from Paxos and its affiliates.

View the official press release here:… pic.twitter.com/G7fb9Ny9bT

— Paxos (@Paxos) October 31, 2024

With DBS Bank, Singapore’s largest financial institution by assets, joining as a primary banking partner, the collaboration positions USDG to benefit from robust support in cash management and custodial services for its reserves.

Regulatory Compliance and Economic Incentive

Paxos aims to address the increasing enterprise demand for regulatory-compliant digital assets with USDG. According to Paxos Head of Product Ronak Daya, USDG stands out by combining compliance with Singapore’s regulatory standards and providing practical economic benefits for businesses interested in stablecoins. 

By aligning with the regulatory framework, USDG is positioned as a reliable option for enterprises seeking stability in a digital asset. Paxos expects that this combination will drive innovation and broader adoption of stablecoins globally.

Approval from Singapore’s Monetary Authority

The introduction of USDG follows Paxos Singapore’s approval in July from the Monetary Authority of Singapore (MAS) to issue stablecoins. Designed to meet the new MAS stablecoin standards, the launch of USDG also comes after the release of MAS’s finalized regulatory framework last year. 

This framework mandates that stablecoins be backed by low-risk, liquid reserve assets, with issuers required to maintain a minimum base capital of one million Singapore dollars (approximately $755,000). It also calls for transparent online disclosures, ensuring that stablecoin holders can access essential information.

MAS Deputy Managing Director Ho Hern Shin emphasized that the framework aims to position regulated stablecoins as a trusted digital medium of exchange and a bridge between fiat and digital asset ecosystems. 

The MAS’s approach seeks to ensure the value stability of approved stablecoins in Singapore’s digital asset landscape.

Expanding Blockchain Availability

Upon launch, USDG will initially be available on the Ethereum blockchain, with further issuance across additional blockchains planned to broaden its accessibility. 

Paxos has previously launched five other digital assets, with the recent introduction of Lift Dollar (USDL) in the United Arab Emirates as the company’s first localized stablecoin. USDG now becomes Paxos’s second regional stablecoin, marking a strategic expansion in regulated markets.

Next Steps for MAS and Stablecoin Framework Implementation

The regulations that are currently still evolving within Singapore’s legal system will need parliamentary endorsement to be fully implemented through the MAS framework. 

These ongoing regulations are the sign the city state has a plan crafting for a safe and secure context for digital assets. In light of this, the more DBS Bank was involved in the management of reserve assets that belong to USDG, the more evident it became that the role of financial institutions was critical to the stability and security of stablecoins.