- Singapore’s largest bank DBS Group Holdings will for the first time custody stablecoin reserves and offer related cash management services, in a tie-up with the local unit of US-based cryptocurrency issuer Paxos Trust.
Singapore is seeking to foster productive uses of crypto’s underlying blockchain technology to augment its status as a global financial hub. Advocates of stablecoins argue they will make inroads into traditional finance because they make payments easier, faster and cheaper, a claim yet to be proven at scale.
Circle Internet Financial’s USDC is in second spot on 20 per cent. Paxos, a smaller player, issues USDP as well as PayPal Holdings’ PYUSD. A spokesperson for Paxos said in 2023 that the company plans to issue US dollar-based tokens in Singapore. The outlook has improved due to evolving regulations. Higher global interest rates also spotlighted the commercial opportunities stemming from reserve management.