Paxos has just won a major regulatory victory. The New York-based company has received approval in principle (IPA) from the Abu Dhabi Financial Services Regulatory Authority (FSRA). Is Paxos stablecoins paving the way for the democratization of crypto use? The license will enable the company to issue stablecoins backed by the US dollar in the United Arab Emirates.
New era for Paxos Stablecoins in Abu Dhabi
Paxos a leading crypto infrastructure company, has crossed a decisive step in the development of the crypto ecosystem in the United Arab Emirates by obtaining approval in principle (IPA) of the FSRA. This decision authorizes Paxos to launch his stablecoin USDP backed by the US dollar (USD) and to provide digital asset brokerage and custody services in the region. The Paxos Aren’t stablecoins becoming the hub of tomorrow’s exchanges?
It’s no coincidence that Paxos is looking to expand into the Middle East. In recent months, the company has had problems with the Securities and Exchange Commission (SEC) about its flagship stablecoin, the Binance USD (BUSD). Further to this case, Binance has announced the end of support for this dollar-backed token.
By obtaining licenses in Singapore and now Abu Dhabi, Paxos diversifies its activities into more lenient jurisdictions. The head of strategy at Paxos Walter Hessert welcomed these recent developments:
Statement by Walter Hessert
Paxos’ strategic expansion in the Middle East driven by regulatory challenges
The choice of Abu Dhabi as a new pole of expansion is no coincidence. The United Arab Emirates have become a major cryptocurrency hub. The country has clear and strict regulations in this sector, notably via the ADGM. This year also saw the creation of a committee dedicated to digital asset issues.
What’s more, obtaining this license for stablecoin is only the first step. Paxos will also be able to provide brokerage services and custody services in the region, offering a full range of products to local investors. Indeed, the need for legally compliant tools is becoming increasingly strong thanks to the growing adoption of crypto notably by institutional investors. Paxos stablecoins therefore represent a very positive sign for the crypto market, which continues to structure itself legally around the world.
This new outlet in a financially and economically attractive region reinforces Paxos in its international expansion strategy. Already present in Singapore, the U.S.-based company intends to gradually develop its digital asset services for individuals and businesses alike, relying on secure infrastructures and compliance with local regulations.
Will stablecoins make their mark on the market and thus become pivotal in the exchanges of the future?
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.