Blockchain for Banking News

Paypal backed Paxos approved for blockchain payments in Singapore


Today Paxos announced it received in-principle approval from the Monetary Authority of Singapore to operate digital payment token services. Paxos is one of the few organizations that comfortably spans the cryptocurrency and institutional worlds. 

To understand how Paxos might operate in Singapore with a Major Payments Institution License, it’s worth exploring some of its current businesses.

On the cryptocurrency side, Paxos provides a stablecoin solution that includes its own stablecoin – the one used by Meta – and provides the infrastructure for the Binance Dollar BUSD, the third largest stablecoin with an $18 billion balance. It also provides the brokerage service for PayPal’s cryptocurrency offering.

Paxos confirmed that its new license allows it to offer Paxos Crypto Brokerage, stablecoin, and custody services in Singapore, expanding its services to Singapore residents and any clients that wish to expand to Singapore.

On the institutional side, it has an enterprise blockchain stock settlement service with clients including Bank of America, Credit Suisse and Instinet. However, this is a U.S. only service at this stage. 

The company has raised $540 million in funding to date, including $300 million in April last year. Backers include Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital and PayPal Ventures.

Paxos describes itself as a regulation-first company. It has an existing license from the New York State Department of Financial Services. “We believe the benefits of blockchain can only be achieved if solutions are built within regulated frameworks,” said a spokesperson. Singapore is one of the few jurisdictions that provide crypto regulatory clarity as well as being a financial hub and gateway to Asia.