PAXOS Secures FSRA Approval for Stablecoin Issuance in Abu Dhabi
Paxos Secures FSRA Approval for Stablecoin Issuance and Crypto Activities in Abu Dhabi.
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Paxos, a blockchain and tokenization platform, has received approvals from the Financial Services Regulatory Authority (FSRA), a key regulatory body responsible for overseeing and regulating financial services and markets in Abu Dhabi, United Arab Emirates (UAE), ) to issue stablecoins backed by various currencies, including the US dollar.
The approvals also grant Paxos the authority to offer crypto-brokerage and custody services through regulated entities within the ADGM.
Walter Hessert, Paxos Head of Strategy, stated that:
“Blockchain technology is revolutionizing the global financial system to be more open, secure, and innovative. Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services.”
The company claims that its stablecoins are fully backed 1:1 by the US Dollar and cash equivalents and that it issues monthly attestations and reserve reports to verify its reserves.
Paxos was the issuer of BUSD, a USD-pegged stablecoin that was once one of the most popular stablecoins in the world. However, in 2023, Paxos faced increasing regulatory scrutiny from the New York State Department of Financial Services (NYDFS).
The NYDFS ordered Paxos to stop issuing new BUSD tokens in February 2023, citing concerns about the company’s ability to maintain a 1:1 reserve of USD for every BUSD in circulation.
As a result, they terminated the relationship with Binance but will support BUSD operations until February 2024.
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