Crypto Firm Paxos Expands to Abu Dhabi
Crypto firm Paxos is expanding its international presence by securing two preliminary approvals in Abu Dhabi. The Financial Services Regulatory Authority in the Abu Dhabi Global Market has granted Paxos in-principle approvals to issue stablecoins and provide crypto brokerage and custody services. These approvals are for two new entities of Paxos within the ADGM.
According to a spokesperson from Paxos, full approvals are expected in the first half of next year. Once obtained, Paxos will be able to issue USD-backed stablecoins, as well as stablecoins backed by other currencies, from Abu Dhabi. However, the company’s current focus is on launching a new USD-backed stablecoin.
Singapore to Abu Dhabi
This expansion into Abu Dhabi comes shortly after Paxos received in-principle approval from the Monetary Authority of Singapore for its local entity. This entity will introduce a new USD-backed stablecoin in Singapore.
Paxos’ ADGM unit, similar to its Singapore entity, will allow the company to establish partnerships similar to PayPal in the U.S. It will also enable Paxos to onboard customers based in Abu Dhabi for its crypto brokerage and custody services.
Founded in 2012, Paxos has gained support from prominent investors such as Bank of America, Peter Thiel’s Founders Fund, and Coinbase Ventures. With over $540 million raised in funding, the firm was valued at $2.4 billion during its latest Series D round in 2021.
Hot Take: Paxos Expands Global Reach with Abu Dhabi Approvals
Paxos’ recent preliminary approvals from the Financial Services Regulatory Authority in Abu Dhabi mark another step forward for the crypto firm’s international growth strategy. With these approvals, Paxos will be able to issue stablecoins and offer crypto brokerage and custody services in Abu Dhabi. This expansion follows Paxos’ recent approval from the Monetary Authority of Singapore, further solidifying its commitment to regulated growth in international markets.
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