The Monetary Authority of Singapore (MAS) has granted its approval to a pair of stablecoin issuers, Circle Internet Financial and Paxos, to operate as digital asset service providers in the country.
Circle, which issues USD Coin (USDC) and Euro Coin (EUROC), has secured an in-principle approval for a major payments institution licence.
The approval will enable the firm to provide digital payment token solutions as well as international and local transfer services in Singapore.
Circle chief strategy officer and global head of public policy Dante Disparte said: “This milestone enables us to work with all relevant stakeholders and demonstrate the potential of digital currencies, open payment systems and innovation-forward fintech regulations to drive economic growth and strengthen Singapore’s position as a global hub for digital assets.”
Paxos also received a major payments institution licence, thereby becoming the first American firm to secure the licence in Singapore.
The licence allows Paxos to deliver a fully-regulated digital asset and blockchain infrastructure to consumers in the country.
In a statement, Paxos said: “The designation by MAS makes Paxos the most comprehensively regulated digital asset and blockchain infrastructure provider globally.
“The Major Payments Institution licence allows Paxos to offer digital asset infrastructure safely to global clients.
“By partnering with Paxos in Singapore, enterprises can provide crypto to international consumers safely and without reputational risk.”
The latest approvals come shortly after MAS announced plans to begin trials for its purpose-bound digital dollar concept.
Meanwhile, last week, MAS released two consultation papers that include proposals on regulation to minimise the risk of cryptocurrency trading and back the development of stablecoins under the country’s Payment Services Act.