Paxos Launches USDG in Singapore, Partnering with DBS for Dollar-Backed Stability

Paxos, a regulated blockchain company, has introduced a new stablecoin called Global Dollar (USDG).This stablecoin complies with Singapore's regulations and is backed by United States dollars, while DBS Bank manages its reserves.

This development comes five months after Paxos launched its UAE-regulated interest-bearing stablecoin USDL.

Paxos and DBS Unveil USDG for a New Era of Stablecoins

Paxos announced the launch of its Singapore-complaint stablecoin called Global Dollar (USDG). USDG is the company's second stablecoin tailored to a specific region. Its launch comes after the company unveiled its interest-bearing stablecoin, USDL, in the United Arab Emirates five months ago.

(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

In July, Paxos Digital Singapore, a branch of Paxos, got the green light from the Monetary Authority of Singapore (MAS) to launch its USDG stablecoin.

Evy Theunis, who leads digital assets at DBS Bank, shared why the bank teamed up with Paxos to roll out this stablecoin. She explained that DBS offers solid solutions to stablecoin issuers to help them meet the high standards that regulators and customers expect.

Theunis added that the partnership also lets DBS do even more in the digital asset space.

Paxos explains that USDG fully meets the new stablecoin guidelines Singapore's Monetary Authority (MAS) set in August 2023. These rules outline how issuers should back, manage, and audit stablecoins to ensure they are safe and reliable for users.

Due to this compliance, USDG is currently active on the Ethereum blockchain, which people can use and trade. Paxos also has plans to expand USDG beyond Ethereum. The company intends to make USDG available on other blockchains as regulatory conditions shift and become more favorable.

Users may eventually see USDG on multiple networks as rules evolve, allowing for greater access and flexibility.

Paxos announced on X that USDG aims to drive the next big wave in stablecoin adoption. It designed the coin to work for both crypto communities and regulated institutions. This means USDG meets strict standards to ensure trust and reliability.

(4/4) USDG is built to power the next wave of global stablecoin adoption, catering to both crypto-native ecosystems andregulated institutions that maintain higher standards of operation. USDG is available today on Ethereum and will be issued on more blockchains as approved by...

- Paxos (@Paxos) November 1, 2024

The company also plans to expand its reach by partnering with top crypto exchanges, wallets, and trading platforms around the world. By doing this, it hopes to make USDG accessible to both individuals and institutions, helping more companies use USDG securely and easily.

Sygnum Bank Highlights Traditional Banks Embracing Stablecoins Due to Clarity in Rules

Stablecoins are gaining more traction in mainstream financial applications. Sygnum Bank, a crypto bank based in Switzerland, sees more traditional banks showing interest in stablecoins.

The bank believes this is happening because rules around stablecoins are getting clearer. With these clearer rules, banks feel more comfortable stepping into the stablecoin world.

Also, Sygnum Bank pointed out that stablecoin providers who already follow these new rules could have an edge. As people start using stablecoins more for real transactions, these early movers could stand out.

Early compliance could give them a significant advantage as stablecoins become more widely used in everyday finance.

USDG is fully backed by the US dollar on a 1:1 basis, meaning for every USDG token, there is an equivalent amount of dollar deposits. It is also backed by short-term US government securities and other cash equivalents.

This backing ensures that users can easily exchange their USDG tokens for real US dollars when they want to.

Head of Products at Paxos, Ronak Daya, mentioned that the partnership with DBS will help businesses adopt stablecoins more widely. This means more companies can start using USDG in their operations.

Paxos offers other digital assets like PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). Each of these assets serves a different purpose in the digital finance space.

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