Paxos, a blockchain platform, has recently established a subsidiary called Paxos Digital Singapore and obtained in principle approval (IPA) from the Monetary Authority of Singapore to create a stablecoin pegged to the US dollar.
The Monetary Authority of Singapore recently released regulations for the supervision of stablecoins in August. These regulations include stringent measures, requiring the issued currency to be fully backed by cash or short-term debt at all times.
Paxos has stated that they have previously issued stablecoins backed by cash equivalents. One of the currencies they have issued is the PayPal USD, and they regularly disclose their asset holdings. Additionally, the company already holds a license to operate a payment service in Singapore.
TLDR: Paxos has received preliminary approval from the Monetary Authority of Singapore to create a stablecoin pegged to the US dollar. This comes after the release of regulations for the supervision of stablecoins in Singapore, which require full backing by cash or short-term debt. Paxos has previous experience issuing stablecoins and holds a license to operate a payment service in Singapore.