Paxos has received in-principle approval from the Financial Services Regulatory Authority in the Abu Dhabi Global Market. This approval spans two crucial domains: issuing United States dollar-backed stablecoins and providing crypto-brokerage and custody services in the emirate.
Approval Echoes Success in Singapore
Paxos’ latest milestone in Abu Dhabi closely follows a similar move in Singapore, where the local entity obtained approval to launch a U.S. dollar-backed stablecoin. The strategic approach of gaining regulatory approval in multiple international jurisdictions positions Paxos as a trailblazer in the industry.
Walter Hessert, Paxos’ Head of Strategy, emphasized the significance of the in-principle approvals from both the Financial Services Regulatory Authority in Abu Dhabi and the Monetary Authority of Singapore. He stated,
“Our IPAs solidify our commitment to pursuing international growth through regulated frameworks.”
Paxos stands out for its unique approach, positioning itself as a trusted and innovative partner for global enterprises.
Commitment to Transparency and Reliability
Paxos reiterates its commitment to transparency and reliability, especially regarding its stablecoin reserves. The firm assures that its stablecoins are “stable, safe, and reliable.” This commitment to transparency aligns with the industry’s growing need for trust and accountability.
Upon receiving full approval, Paxos plans to expand the use of its stablecoins. This move signifies the company’s confidence in the stability and safety of its stablecoin offerings. The expansion aligns with the broader trend in the industry, where stablecoins are gaining prominence for their utility in various financial transactions.
Collaborative Ventures with PayPal
Highlighting the industry collaborations, it’s worth noting that PayPal launched its PYUSD stablecoin, issued by Paxos, in August. This collaboration underscores the trust major players place in Paxos’ stablecoin infrastructure.
Regulatory Landscape in Abu Dhabi
The timing of Paxos’ approval aligns with the regulatory landscape in Abu Dhabi, where comprehensive regulations related to distributed ledger technology were introduced on November 1. The region’s proactive approach to cryptocurrency regulations, initiated in 2018, positions it as a favorable environment for innovative blockchain and crypto ventures.