This step stands out as part of Paxos’ effort to increase its influence in the digital asset ecosystem. Paxos, a regulated blockchain infrastructure company, announced USDG on October 31, 2024. This comes five months after the introduction of the Lift Dollar (USDL) stablecoin regulated in the United Arab Emirates.

Paxos Digital Singapore received approval for USDG from the Monetary Authority of Singapore (MAS) in July.

Evy Theunis, head of DBS Bank’s digital assets department, explained the rationale for their partnership with Paxos: “Stablecoin issuers will find that our solutions will help them meet the robust standards expected by regulators and customers. This partnership further enhances DBS’ wide-ranging involvement in the digital asset ecosystem .”

USDG was developed in line with the new stablecoin framework created by MAS in August 2023. Paxos stated that USDG is currently available on the Ethereum blockchain and will be available on other blockchains as regulations evolve.

“USDG is built to support the next wave of global stablecoin adoption and appeals to both crypto-centric ecosystems and regulated institutions that maintain higher standards of operations,” the company said. he said.

Paxos plans to partner with global crypto exchanges, wallets and trading platforms to offer USDG to individuals and institutions. Besides this, other digital asset organizations such as Sygnum Bank have emphasized that increased regulatory clarity is encouraging traditional financial institutions to launch stablecoins.

“Stablecoin providers that comply with evolving regulatory standards are likely to gain an advantage as the use of stablecoins in real-world transactions increases,” Sygnum Bank said. he said.

USDG is backed by the US dollar at a 1:1 ratio. This support is provided through U.S. dollar deposits, short-term U.S. government bonds and other cash equivalents.

This provides the assurance that users can convert their tokens into fiat currencies. Ronak Daya, Paxos’ product manager, stated that the DBS partnership will facilitate stablecoin adoption at the institutional level.

Paxos’ other digital asset offerings include PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG). These products demonstrate Paxos’ innovative approach to the digital asset space and commitment to regulatory compliance.

The launch of USDG is considered an important step towards Paxos’ goal of increasing stablecoin usage worldwide and strengthening the digital asset ecosystem.

Paxos’ USDG stablecoin is a regulated digital asset solution developed in accordance with Singapore’s financial regulatory framework. The collaboration with DBS Bank opens up new opportunities for both users and crypto issuers.

These developments will increase competition in the stablecoin market, while also strengthening the integration between traditional financial systems and digital assets. This new move by Paxos can serve as an example for other financial institutions aiming to increase the use of stablecoins.