Singapore Crypto Investors Can Now Earn Passive Income from Stablecoin Issuers

The Monetary Authority of Singapore (MAS) has granted in-principle licenses to issuers of stablecoins backed by the Singapore dollar (SGD) or any other currency from the Group of Ten (G10) economies. These approvals may soon allow crypto traders and investors to earn passive income from stablecoin holdings.

The Singapore central bank has approved stablecoin issuers, including Paxos Digital Singapore (Paxos) and StraitsX, to offer stablecoins backed by the city-state’s local currency, the US dollar, or any of the other G10 currencies. These successful applicants had to meet reserve asset, redemption, and disclosure requirements.

Singapore Beats Asian Rivals

According to Ravi Menon, the head of the MAS, Paxos, and StraitsX satisfied the central bank’s requirements “substantively.” It issued guidance for non-government-backed stablecoins in August.

Both Paxos Digital and StraitsX will issue US dollar-based stablecoins. StraitsX already has an SGD-backed coin.

Walter Hessert, Head of Strategy at Paxos, said:

“This in-principle approval from the MAS will allow Paxos to bring its regulated platform to more users around the world. Because Paxos upholds the highest standards of compliance and oversight, global enterprises partner with us to power stablecoin solutions that drive their businesses and respond to their customers’ needs.”

Read more: What Is a Stablecoin? A Beginner’s Guide