Paxos, a New York-based blockchain infrastructure firm, has recently received two in-principle approvals from the Financial Services Regulatory Authority in the Abu Dhabi Global Market (ADGM). These approvals will allow Paxos to issue USD-pegged stablecoins as well as offer crypto brokerage and custody services in Abu Dhabi.
This regulatory milestone marks Paxos’ expansion into the global market and its commitment to providing safe and trusted digital asset services to billions of users. The approvals granted by the Financial Services Regulatory Authority in the ADGM solidify Paxos’ position as a regulated entity in the region.
According to Walter Hessert, the head of strategy at Paxos, “Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services. 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’ offerings, including stablecoins such as PayPal USD (PYUSD), Pax Dollar (USDP), and Pax Gold (PAXG), are widely used and have partnerships with industry players such as PayPal, Mastercard, Nubank, Bank of America, Mercado Libre, and Societe Generale.
It is important to note that in February, Paxos terminated its relationship with Binance over the branding and issuance of Binance USD (BUSD) following an order from the New York Department of Financial Services (NYDFS).
This recent development in Abu Dhabi showcases Paxos’ dedication to expanding its reach and operating within regulated frameworks, ensuring that its products and services adhere to the highest standards of compliance and security.
As the company continues to grow its international presence, its focus on regulatory compliance and trustworthiness will play a crucial role in shaping the future of digital asset services.