Paxos has received two in-principle approvals from the Financial Services Regulatory Authority in the Abu Dhabi Global Market (ADGM).
The company will issue USD-pegged stablecoins as well as crypto brokerage and custody services.
Blockchain infrastructure firm Paxos has scored another regulatory milestone as it expands its reach globally.
On Wednesday, the New York-based company announced it had secured two preliminary approvals to issue stablecoins in Abu Dhabi.
Paxos regulated in the Abu Dhabi Global Market
Specifically, the Financial Services Regulatory Authority in the Abu Dhabi Global Market (ADGM) has granted Paxos two in-principle approvals not just for stablecoin issuance, but also for crypto brokerage and custody services.
Paxos will offer these products and services via to FSRA-regulated entities. The agency will also regulate the stablecoin and tokenization company’s services offered out of the ADGM.
“Today’s announcement marks yet another milestone in Paxos’ ability to provide billions of users with safe and trusted digital asset services. 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,” Walter Hessert, head of strategy at Paxos, said.
Paxos has partnerships with PayPal, Mastercard, Nubank, Bank of America Mercado Libre, and Societe Generale among other crypto and financial industry players. The company issues various US dollar pegged stablecoins, including PayPal USD (PYUSD), Pax Dollar (USDP) and Pax Gold (PAXG).
In February, the company terminated its relationship with Binance over the branding and issuance of Binance USD (BUSD). This followed an order from the New York Department of Financial Services (NYDFS).