Paxos collaborates with DBS Bank to launch USD stablecoin USDG

On Thursday, Paxos, a blockchain and tokenization infrastructure platform, announced the launch of the Global Dollar (USDG) stablecoin, with DBS Bank serving as its primary banking partner responsible for cash management and custody of USDG reserves.

According to the press release, USDG essentially complies with the upcoming stablecoin framework issued by the Monetary Authority of Singapore (MAS), aimed at supporting the needs of regulated institutions that maintain high operational standards. Paxos is required to hold high-quality liquid assets to support the USDG, including US dollar deposits, short-term US treasury bond bonds and other similar cash equivalents, to ensure that the stable currency is 1:1 anchored to the US dollar and that consumers can convert it into legal tender at any time.

Paxos Digital Singapore, the issuer of USDG, is the Singapore branch of Paxos and is regulated by the Monetary Authority of Singapore. Paxos Global, another subsidiary of Paxos, will collaborate with global exchanges, wallets, and platform operators to distribute USDG to individuals and institutions.

USDG has been issued on the Ethereum blockchain today and will be issued on more blockchains in the short term.