Paxos Secures Preliminary Approval from ADGM to Offer Services in UAE

• Two new Paxos companies under the ADGM have received preliminary clearances.
• In August, PayPal introduced its PYUSD stablecoin, which was issued by Paxos.

As part of its ongoing global expansion, crypto firm Paxos recently obtained two preliminary approvals in Abu Dhabi. On Wednesday, Paxos said that the Financial Services Regulatory Authority in the Abu Dhabi Global Market (ADGM) had given the firm two in-principle permissions to issue stablecoins and provide crypto brokerage and custody services. Two new Paxos companies under the ADGM have received preliminary clearances.

Paxos said on November 29 that the Abu Dhabi Global Market’s Financial Services Regulatory Authority has given the firm in-principle clearance to issue stablecoins backed by US dollars and to “offer crypto-brokerage and custody services” inside the emirate. Moreover, the decision came after authorities in Singapore took a similar step, after Paxos announced that its Singaporean subsidiary will introduce a stablecoin backed by the US dollar.

Paxos head of strategy Walter Hessert stated:

“Our IPAs from the FSRA, on the heels of our IPA from the Monetary Authority of Singapore, solidify our commitment to pursuing international growth through regulated frameworks. Paxos is unique in the industry for this approach and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner.”

Eyeing Full Approval

Once Paxos’s stablecoins have received complete approval, the company plans to continue expanding their usage. Also, the corporation reaffirmed its commitment to being transparent about its stablecoin reserves, describing them as “stable, safe, and reliable.” In August, PayPal introduced its PYUSD stablecoin, which was issued by Paxos.

Furthermore, Abu Dhabi Global Market (ADGM) unveiled extensive restrictions pertaining to distributed ledger technology on November 1st. By creating the Iota Ecosystem DLT Foundation with an office in Abu Dhabi, open-source blockchain developer Iota aims to promote the growth of its distributed ledger technology (DLT) throughout the Middle Eastern region. 

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