Revolution in Fintech: Paxos launches new USDG stablecoin with DBS Bank support

Revolution in Fintech: Paxos launches new USDG stablecoin with DBS Bank support

Paxos, known for its innovative approaches to blockchain regulation, is proud to announce the launch of a new stablecoin called USDG. Designed specifically for Singapore, this digital dollar is backed by US dollar reserves managed by the renowned DBS Bank. This collaboration is based on the stringent framework of the Monetary Authority of Singapore (MAS), underscoring the drive for transparency and innovation in the world of cryptocurrencies.

Where was USDG born?

Paxos, just five months after the successful launch of the interest-bearing stablecoin Lift Dollar (USDL) in the United Arab Emirates, is coming up with another localised currency. USDG was officially launched on 31 October and is poised to strengthen the digital asset ecosystem in Asia. In July, Paxos received the necessary approvals from MAS, giving a clear signal of compliance with regulatory standards.

Evy Theunis, head of digital assets at DBS Bank, said, "Our partnership with Paxos will help stablecoin issuers meet the high standards that regulators and customers expect of them."

The future of stablecoins

According to Paxos, the USDG is aligned with the upcoming MAS framework for stablecoins, which will allow it to be secured on the Ethereum blockchain, with the possibility of future extension to other blockchain networks. USDG is backed 1:1 by the US dollar, through dollar deposits and other financial instruments, ensuring that users can easily and worry-free convert their assets into fiat currency.

Paxos is planning a large-scale global distribution of USDG not only through crypto exchanges, but also various wallets and trading platforms. With this move, they aim to reach out to the general public, both individuals and institutional investors.

Ronak Daya, Head of Product at Paxos, expressed his belief that the collaboration with DBS Bank will open up new opportunities for the adoption of stablecoins in the corporate sphere.

Conclusion.

With the advent of USDG stablecoin, Singapore is becoming a hub of financial innovation. The growth of regulated stablecoins, as confirmed by Swiss crypto bank Sygnum, will encourage traditional financial institutions to actively participate in the modern financial ecosystem. The emergence of USDG is thus not only a step forward for Paxos, but also a signal to the entire market that regulation and innovation can go hand in hand.

The Coingarage team