Duelling hubs
Singapore, Dubai, Hong Kong, Japan and Europe are among the jurisdictions that subsequently developed digital asset regulations to protect investors and spur innovation in case blockchain technology gains mainstream traction.
Both the local operations of Paxos and Circle Internet Financial now have Singapore permits.
Under the Republic’s stablecoin rules, issuers must meet capital, reserve and disclosure requirements.
A spokesperson for Paxos said in 2023 that the company plans to issue US dollar-based tokens in Singapore.
Cantor Fitzgerald acts as a custodian for Tether. In the United States, Bank of New York Mellon has that role for Circle, while BMO Harris Bank, State Street Bank and Trust and Customers Bank are among the institutions Paxos may use.
Many crypto companies had struggled to access banking services because of the digital asset industry’s history of volatility and scandal. The outlook has improved due to evolving regulations. Higher global interest rates also spotlighted the commercial opportunities stemming from reserve management.
By working with stablecoin companies, “banks are not only diversifying their offerings but also effectively managing the inherent risks associated with cryptocurrencies”, said Ms Grace Chong, head of the financial regulatory practice at Drew and Napier in Singapore.
Separately, Paxos named Ms Jeannie Lim, who was most recently head of messaging payments at Meta Platforms in Singapore, as its executive director at Paxos Singapore.
“Jeannie will be responsible for developing and driving Paxos’ strategic vision and goals for the Asia-Pacific region,” a spokesperson wrote in an e-mail.
“She’ll oversee new business opportunities and partnerships, as well as manage continued engagement with key clients, partners, regulators and the like throughout the region,” the spokesperson added. BLOOMBERG
