USDG and USDL are stablecoins that are entirely backed and trusted, and they are both issued under prudential regulatory oversight. In order to guarantee that stablecoins remain at a 1:1 parity with the US dollar, Paxos strictly adheres to strict reserve management standards and exclusively invests in short-term, highly liquid US government securities and cash counterparts. This ensures the seamless conversion to fiat currency and reinforces confidence in Paxos’ ecosystem.
Paxos Digital Singapore has issued the Global Dollar (USDG), a stablecoin that is backed by the US dollar. This coin is substantively compliant with the Monetary Authority of Singapore’s (MAS) impending stablecoin regulatory framework. This guarantees that USDG adheres to the most stringent regulatory compliance and consumer protection standards. Paxos International, which is subject to the Financial Services Regulatory Authority of Abu Dhabi Global Market, introduced the US dollar-backed stablecoin Lift Dollar (USDL) earlier this year. USDL provides its end holders with a daily programmatic secure yield.
Paxos has a proven track record as a provider of stablecoin and blockchain infrastructure in the industry. Paxos stablecoins are designed to meet and surpass the best interests of digital asset holders worldwide, and they are prudently regulated by top global entities with guaranteed 1:1 asset parity.
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Industry Comments
Adam Ackermann, Head of Treasury and Portfolio Management at Paxos, said: “As the stablecoin industry continues to attract the world’s leading enterprises, it’s more important than ever to ensure they have access to sophisticated, institutional-grade products. Standard Chartered’s commitment to risk management, compliance and operational efficiency across its world-class banking solutions is critical to Paxos as a regulated stablecoin issuer.“
John Collura, Global Head of Banks & Broker Dealer Sales and Head of Europe & Americas for Financing and Securities Services at Standard Chartered, said: “Our partnership with Paxos reflects Standard Chartered’s commitment to shaping the future of digital finance with trust and innovation. By providing robust cash management, trading, and custody services, we’re enabling the next generation of secure and regulated digital assets solutions that drive global adoption and economic inclusion.”
FAQs
1. What is the Paxos and Standard Chartered partnership about?
Paxos has partnered with Standard Chartered to enhance reserve management for its stablecoins, Global Dollar (USDG) and Lift Dollar (USDL). Standard Chartered provides cash management, trading, and custody services for these fully backed stablecoins, reinforcing the infrastructure supporting trusted digital assets in Singapore and the UAE.
2. How does Paxos ensure the stability of its stablecoins?
Paxos stablecoins, USDG and USDL, are fully backed by short-term US government securities and cash equivalents. This ensures 1:1 parity with the US dollar, seamless convertibility to fiat, and robust consumer trust. The stablecoins operate under strict prudential regulatory oversight in jurisdictions like Singapore and Abu Dhabi.
3. What role does Standard Chartered play in this collaboration?
Standard Chartered supports Paxos’ tokenization platform with banking services such as transaction banking, financial markets, and securities services. The bank’s tailored solutions simplify digital asset custody and ensure seamless integration of Paxos’ stablecoins into the broader financial ecosystem.
4. What are USDG and USDL, and how are they regulated?
USDG is issued by Paxos Digital Singapore and complies with the Monetary Authority of Singapore’s stablecoin regulations, ensuring high consumer protection. USDL, launched by Paxos International, is regulated by the Abu Dhabi Global Market and offers safe yield to holders. Both are US dollar-backed stablecoins.
Conclusion
The Paxos-Standard Chartered partnership marks a pivotal advancement in blockchain-based stablecoin infrastructure, integrating trusted banking services with cutting-edge digital asset solutions. This collaboration underscores a commitment to regulatory compliance, consumer protection, and innovation in digital finance.
Paxos’ stablecoins, Global Dollar (USDG) and Lift Dollar (USDL), are meticulously designed to maintain 1:1 US dollar parity, leveraging rigorous reserve management through high-liquidity US government securities and cash equivalents. With regulation by entities like the Monetary Authority of Singapore and Abu Dhabi Global Market, these stablecoins deliver unmatched trust and reliability for digital asset holders globally.
Standard Chartered’s role enhances this ecosystem by offering robust cash management, trading, and custody solutions. Its ability to navigate complex regulatory landscapes ensures a seamless, secure framework for Paxos’ tokenization platform. Businesses can now access Paxos’ stablecoins with greater confidence, benefiting from enhanced banking capabilities integrated with trusted digital assets.
As the global demand for secure, regulated digital assets grows, the Paxos-Standard Chartered collaboration sets a benchmark for transparency, efficiency, and compliance. This partnership not only strengthens Paxos’ infrastructure but also provides businesses and investors with secure, innovative tools to thrive in the evolving digital financial landscape.
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