Paxos, a cryptocurrency firm, has secured preliminary approval from Abu Dhabi regulators for two key initiatives: issuing stablecoins and introducing digital asset services. The company disclosed on November 29 that the Financial Services Regulatory Authority of Abu Dhabi Global Markets granted Paxos an in-principle approval to issue a stablecoin backed by the U.S. dollar, alongside permission to offer cryptocurrency brokerage and custody services in the Emirate.
According to Paxos, this regulatory green light aligns with a similar approval from the Monetary Authority of Singapore, underscoring their commitment to international expansion within a regulated framework. Walter Hessert, Paxos' head of strategy, highlighted their distinctive approach in the industry, emphasizing their intention to broaden regulatory authorizations and cater to global enterprises as a trusted partner in innovation.
With this preliminary approval, Paxos aims to extend the utility of its stablecoin following full regulatory endorsement. The company stressed the stability, safety, and reliability of its stablecoin reserve, underlining its transparency. Notably, PayPal had launched the PYUSD stablecoin, issued by Paxos, in August.
In a separate move, Abu Dhabi Global Market initiated comprehensive regulations pertaining to distributed ledger technology on November 1. This proactive step comes after the region commenced efforts towards cryptocurrency regulations dating back to 2018.
