According to the latest report, Paxos gained pivotal pre-approval this week to offer USD-pegged stablecoins and associated crypto services in Abu Dhabi. This follows its parallel progress in Singapore.
The company announced its in-principle authorizations from the Financial Services Regulatory Authority (FSRA). The FSRA is located in the Abu Dhabi Global Market (ADGM). The provisional green light sets the stage for Paxos to mint new stablecoins once final approvals are complete.
“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,” said Paxos head of strategy Walter Hessert.
Also read: Binance to Delist & End Support for its BUSD Stablecoin
Paxos touts its commitment to transparency
The ADGM’s evolving digital asset regulations look to support innovation while ensuring investor protection and risk controls. Paxos touts its own commitment to transparency around reserves backing tokens like the BUSD stablecoin issued for Binance prior to recent complications.
The statement emphasized Paxos taking a “regulated framework” approach more akin to traditional financial services infrastructure as it navigates expansion.
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Paxos affirming its international growth roadmap comes the very same week its founding stablecoin BUSD saw key exchange Binance announce a phase-out by mid-December. That move follows February guidance for the firm to halt BUSD minting from New York regulators, citing undisclosed concerns.