Paxos, a blockchain and tokenization infrastructure platform, has introduced Global Dollar (USDG) – a US dollar-backed stablecoin that Paxos said is “substantively compliant with MAS’ upcoming stablecoin framework.”
Paxos Digital Singapore Pte. Ltd. is the issuer of USDG and is regulated by the Monetary Authority of Singapore (MAS). Paxos’s affiliate, Paxos Global Pte. Ltd., will partner with global exchanges, wallets and platforms to distribute USDG to individuals and institutions.
USDG is designed to support the needs of regulated institutions that maintain higher standards of operation. It is available today on Ethereum and will be issued on more blockchains in the near term. Paxos is required to hold only high-quality liquid assets to back USDG – US dollar deposits, short-duration US Government securities and other such cash equivalents. This ensures USDG maintains 1:1 parity with the US dollar. Consumers can redeem their tokens for fiat at all times.
“Enterprise interest in stablecoins has never been higher than it is today, but the market lacks a solution that combines regulatory compliance with real economic incentives for enterprises,” Paxos head of product Ronak Daya said. “USDG offers a trusted solution with a top-tier banking partner in DBS that will be the catalyst to drive stablecoin innovation and enterprise adoption at a global scale.”
USDG represents the sixth digital asset to be successfully issued by Paxos, the first from Paxos Digital Singapore. Its digital assets include PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG), which are issued by Paxos Trust Company, LLC, a limited-purpose trust company overseen by the New York Department of Financial Services. Paxos International, a UAE-based affiliate of Paxos regulated by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), issues the yield-bearing stablecoin Lift Dollar (USDL). Each of these assets provides users with a quality, 1:1 asset parity overseen by the highest levels of regulatory oversight. The company is the trusted partner for enterprises around the world to tokenize, custody, trade, and settle assets.
DBS Bank will serve as Paxos’ primary banking partner for cash management and custody of USDG reserves. Dollars backing the new stablecoin will be held in reserve and managed by Paxos Digital Singapore via DBS.
The smart contract can be viewed via Etherscan and GitHub.
