Paxos, a blockchain infrastructure company, has introduced USDG, a USD-backed stablecoin fully compliant with Singapore’s regulatory framework.
DBS Bank manages the reserves for USDG, and Paxos received approval for the stablecoin from the Monetary Authority of Singapore (MAS) in July. USDG represents Paxos’ second locally regulated stablecoin, following the earlier release of its UAE-regulated Lift Dollar (USDL).
Aligning with MAS’s 2023 stablecoin framework, USDG aims to drive stablecoin adoption in Asia’s growing digital economy. Currently launched on the Ethereum blockchain, Paxos plans to extend USDG to other networks, facilitating broader global adoption. The stablecoin’s regulatory compliance is intended to make it a trustworthy choice for crypto-native platforms and traditional institutions that prioritize security.
To support USDG’s stability, each token is backed 1:1 by USD reserves, including deposits and short-term U.S. government securities. Paxos is expanding its partnerships with exchanges, wallets, and trading platforms to make USDG accessible worldwide.
See Related: Australia’s First Spot Bitcoin ETF To Launch On June 20
Growing Stablecoin In TradFi
Stablecoins are emerging as vital in traditional finance (TradFi), with companies like PayPal, Robinhood, and Revolut entering the market.
PayPal recently completed its first corporate payment using PYUSD, underscoring stablecoins’ potential for seamless transactions. Robinhood and Revolut are also exploring stablecoins, aiming to bridge crypto and traditional financial systems further.
As stablecoin adoption grows, it could reshape financial transactions, offering TradFi companies a pathway to digital assets and stable, blockchain-based payments. This trend reflects increasing acceptance of stablecoins within regulatory frameworks, promoting stability and utility in the digital economy.
