Paxos receives two confirmations of principle in Abu Dhabi

Paxos has received two in-principle approvals from the Financial Services Regulatory Authority in the Abu Dhabi Global Market (ADGM). The company offers USD-pegged stablecoins as well as crypto brokerage and escrow services.

Blockchain infrastructure firm Paxos has hit another regulatory milestone as it expands its reach globally.

On Wednesday, the New York-based company announced that it had received two preliminary approvals to launch a stablecoin in Abu Dhabi.

Paxos is managed in the Abu Dhabi international market

Notably, the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM) has granted Paxos two certificates of principle not only for stablecoin mining, but also for crypto brokerage and escrow services.

Paxos provides these products and services through entities regulated by the FSRA. The agency oversees the services of Stalkcoin and tokenization companies offered outside of ADGM.

“Today's announcement is another milestone in Paxos' ability to provide secure and trusted digital asset services to billions of users. Our IPAs from the FSRA, on the heels of an IPA from the Monetary Authority of Singapore, reinforce our commitment to sustaining global growth within the regulatory framework,” said Walter Hessert, Head of Strategy at Paxos.

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 Binance USD (BUSD) brand and issuance. This follows a mandate from the New York Department of Financial Services (NYDFS).