Paxos, a blockchain infrastructure platform, announced it has received in-principle approval from the Monetary Authority of Singapore (MAS) to operate digital payments token services under the Payment Services Act 2019. With this license, Paxos becomes one of the first blockchain services providers to meet the highest standard of regulation in both New York and Singapore, the company said.
MAS introduced the Payments Services Act as a framework for financial services companies to safely expand into the digital asset ecosystem, and with its Major Payments Institution License, Paxos is now able to offer digital asset and blockchain products and services to customers domiciled in Singapore. The license will also help Paxos to support its current partners in expanding their services into Asia. MAS’ in-principle approval comes seven years after Paxos secured a limited purpose trust charter for digital assets from the New York Department of Financial Services in 2015.
“We founded Paxos in Singapore in 2012 because of this jurisdiction’s forward-thinking approach to innovation and oversight,” Paxos Asia co-founder and CEO Rich Teo said. “Since then, we’ve distinguished ourselves globally as the most trusted blockchain infrastructure provider because we’ve relentlessly pursued regulatory oversight. We believe it’s the only way for consumers and financial institutions alike to truly experience the benefits of the blockchain and digital assets. We’re excited to have MAS as our regulator, and with their oversight, we’ll be able to safely accelerate consumer adoption of digital assets globally by powering regulated solutions for the world’s biggest enterprises.”
The company uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like PayPal, Interactive Brokers, Meta, Mastercard, MercadoLibre, Bank of America, Credit Suisse, Societe Generale and Revolut. The company has more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures. They have offices in New York, London and Singapore.