Last July, blockchain company Paxos Global received permission from the Monetary Authority of Singapore (MAS) to issue a stablecoin in partnership with the country’s largest bank — DBS. On October 31, Paxos confirmed the launch of a localized Singaporean stablecoin, Global Dollar (USDG), on the Ethereum blockchain, designed to support regulated institutions, with reserves held and managed by local bank DBS. This is Paxos’ second localized stablecoin following the launch of Lift Dollar (USDL), which is backed by the United Arab Emirates (UAE).
Paxos noted the high interest in stablecoins among large enterprises, but the market still lacks solutions that combine regulatory compliance with economic benefits. USDG will be a reliable solution with a high level of security thanks to its partnership with DBS, which provides cash deposit management and asset storage.
The USDG is fully backed by dollar deposits, short-term US government bonds, and other cash equivalents, allowing holders to easily exchange stablecoins for fiat. In Singapore, USDG assets are held in trust accounts for additional customer protection. To withdraw USDG, you need to go through the KYC process. The minimum amount for exchange is equivalent to the cost of a bank transfer fee.
As a reminder, recently sUSD (Solayer USD) was launched on the Solana platform — the first synthetic RWA stablecoin of its kind, backed by US Treasury bonds and with an annual yield of 4-5%.
Source: Paxos