Cryptocurrency firm Paxos has received in-principle approval from the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market to issue stablecoins backed by the United States dollar and provide cryptocurrency brokerage and custody services in the emirate.
Paxos had previously secured a similar approval from regulators in Singapore to launch a U.S. dollar-backed stablecoin through its local entity.
This approval from the FSRA marks a significant step for Paxos in pursuing international growth within regulated frameworks. The company aims to provide global enterprises with trusted and innovative cryptocurrency services.
Paxos emphasizes transparency in its stablecoin reserves, ensuring they remain stable, secure, and reliable. The company’s stablecoins are used for various applications, and they recently collaborated with PayPal to launch the PYUSD stablecoin.
The Abu Dhabi Global Market introduced comprehensive regulations related to distributed ledger technology on November 1, 2023. These regulations signify the region’s commitment to fostering a regulatory environment for cryptocurrencies and blockchain technology, with preparations for such regulations dating back to 2018. Paxos’ approval aligns with the region’s evolving regulatory landscape for digital assets.
