Paxos Launches USDG Stablecoin Backed by DBS Bank
The Singapore-compliant stablecoin Global Dollar (USDG), whose US dollar backings are held and managed by DBS Bank, was introduced by regulated blockchain infrastructure provider Paxos. Paxos stated on October 31 that USDG, its second localized stablecoin offering, launched in Singapore five months after launching the interest-bearing Lift Dollar (USDL) stablecoin, which is regulated in the United Arab Emirates.
In July, the Monetary Authority of Singapore (MAS) approved USDG for Paxos Digital Singapore, Paxos’s subsidiary in Singapore. At the time, Evy Theunis, DBS Bank’s head of digital assets, explained the rationale behind the partnership with the cryptocurrency company.
Stablecoin issuers will find that our solutions will help them meet the robust standards regulators and customers expect from them. This partnership further expands DBS’ wide-ranging involvement across the digital asset ecosystem.
Theunis
Paxos’s USDG Stablecoin Aims for Widespread Adoption, Backed by DBS and MAS Standards
Paxos claims that USDG conforms with the future stablecoin standard set up by MAS in August 2023. Because of this, USDG is already accessible on the Ethereum blockchain and will be added to additional chains when laws change. Additionally, the DBS cooperation will facilitate enterprise-level stablecoin adoption, according to Ronak Daya, Paxos’ head of product.
USDG is built to power the next wave of global stablecoin adoption, catering to both crypto-native ecosystems and regulated institutions that maintain higher standards of operation.
Paxos
Users can exchange their tokens for fiat because USDG is backed 1:1 with the US dollar through dollar deposits, short-duration US government securities, and other currency equivalents. To make USDG accessible to people and organizations, the business intends to collaborate with international cryptocurrency exchanges, wallets, and trading platforms.
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