Paxos, the regulated blockchain & tokenization infrastructure platform, secured the in-principle approvals (IPAs) of the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM) for “the necessary Financial Services Permissions to issue US dollar and other currency-backed stablecoins, as well as to offer crypto-brokerage and custody services from two regulated ADGM entities.”
Upon receiving full approval, Paxos will continue “to expand the global footprint of their regulated USD-backed stablecoins.”
Paxos claims that it is ushering in a new era of stablecoin utility and mainstream adoption. The company’s commitment “to transparency, accountability and integrity is exemplified by its adherence to regulatory compliance and proactively seeking oversight. Stablecoins issued with prudential oversight from established and reputable regulators represent a significant step towards democratizing access to commerce and financial services.”
Paxos further claims that it is “committed to integrity and transparency in its operations and the company will only issue tokens that are subject to oversight by prudential regulators. By also securing oversight for its custody and digital asset infrastructure solutions, Paxos services that are provided out of the ADGM will be comprehensively regulated by the FSRA.”
Paxos consistently pursues growth “in global markets within regulated frameworks and engages with regulators to help inform digital asset rules. The company maintains the rigorous AML and KYC standards established by leading financial markets like the US and Singapore. Paxos activities in this region will uphold the same rigor.”
This milestone reportedly solidifies Paxos’ position “as the most comprehensively regulated blockchain platform in the world, meeting the highest operating standards in New York, Singapore and the ADGM.”
Walter Hessert, Paxos Head of Strategy, commented:
“Blockchain technology is [enhancing] the global financial system to be more open, secure and innovative. Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services. Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks. Paxos is unique in the industry for this approach and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner.”
By leveraging blockchain technology, Paxos aims “to open the financial system to everyone, creating more access and freedom for billions of people around the world.”