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Crypto firm Paxos has secured two in-principle approvals from the Financial Services Regulatory Authority in the Abu Dhabi Global Market.
The company said in a press release published on Wednesday that the approvals would allow Paxos to issue stablecoins and provide cryptocurrency brokerage and custody services.
The in-principle approvals granted to Paxos are specifically for two new entities established within the Abu Dhabi Global Market (ADGM).
“Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services,” said Walter Hessert, head of strategy at Paxos. “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 is unique in the industry for this approach and we will continue expanding our regulatory licensing to serve global enterprises as a trusted, innovative partner.”
The company added that expanding to Abu Dhabi would solidify its position as the “most comprehensively regulated blockchain platform in the world,” adhering to the highest operating standards in New York, Singapore and the ADGM.
A Paxos spokesperson told The Block that the full approvals are expected in the first half of next year, and will empower the company to launch new stablecoins backed by USD and other currencies from Abu Dhabi. However, Paxos is presently concentrating on the introduction of a new stablecoin backed by USD.
Paxos’ expansion into Abu Dhabi follows closely on the heels of receiving in-principle approval from the Monetary Authority of Singapore (MAS) for its new local entity, which is set to introduce a USD-backed stablecoin in Singapore.
In a statement released on November 15, Paxos announced that it had obtained preliminary approval from the MAS for its newly established entity, Paxos Digital Singapore Pte. Ltd.
Similar to its Singaporean counterpart, the Paxos unit in ADGM will help the establishment of partnerships akin to PayPal in the U.S., according to The Block’s spokesperson. It will also have the capability to onboard customers based in Abu Dhabi for its crypto brokerage and custody services.
Founded in 2012, Paxos boasts support from prominent investors such as Bank of America, Peter Thiel’s Founders Fund, and Coinbase Ventures. With over $540 million in total funding to date, the company achieved a valuation of $2.4 billion in its latest Series D funding round in 2021.
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