Paxos Applauds New York Department of Financial Services for New Guidance on Issuance of US Dollar-Backed Stable Coins
Paxos was the first licensed limited purpose trust for NYDFS digital assets in 2015
NEW YORK, June 8, 2022 /PRNewswire/ — Paxosthe leading regulated blockchain infrastructure platform, released the following statement from its CEO and co-founder Charles Cascarille in response to the New York State New regulatory guidelines from the Department of Financial Services (“DFS”), establishing fundamental criteria for USD-backed stablecoins:
We commend the DFS for publishing clear and simple guidance on issuing USD-backed stablecoins and for emphasizing the need to protect consumers and ensure responsible innovation across the industry. We believe these guidelines provide a solid foundation for regulatory oversight of issuers of stablecoins and tokens in the future. Paxos is proud to already meet DFS regulatory guidelines.
As regulators, legislators and policymakers seek to design appropriate standards and integrate recent advances in fintech into our economy, we commend DFS and Superintendent Adrian Harris, for their continued leadership in setting prudential standards for the licensing, issuance and custody of digital assets, including stablecoins. The DFS vision has created a responsible place for innovators like Paxos to create exciting products with consumer protection in mind. We are proud to be the first DFS-regulated trust company for digital assets and the first to gain regulatory approval to issue stablecoins. USDP and BUSD stablecoins issued by Paxos and regulated by DFS are the safest US dollar-backed assets available today. Because DFS requires trusts to hold all client funds in bankruptcy remotely and in segregated accounts, we can ensure that client funds are always available. And because we are required to hold reserves only in cash and cash equivalents, our stablecoins are and always will be. a dollar.
These new technologies can play a key role in the safety and efficiency of the financial markets of the 21st century, provided that standards of prudential supervision are put in place. United States led the way in setting high standards and regulatory safeguards for global financial markets. The global dominance of the US dollar and US capital markets is the result of this leadership. We hope that as key decision makers consider the evolution of these frameworks for digital assets, they will pick up the torch of leadership and consider bold but common sense measures that will protect consumers and ensure that the financial system American will continue to be a model that other countries imitate.
To learn more about Paxos and its infrastructure and regulated products, visit www.paxos.com.
Paxos is the leading regulated blockchain infrastructure platform. Its products are the foundation of a new open financial system that can work faster and more efficiently. Today, billions of dollars are locked away in inefficient and outdated financial plumbing, inaccessible to millions of people. Paxos is reforming the financial system to allow assets to move instantly anywhere in the world, anytime, reliably.
Paxos uses technology to tokenize, hold, exchange and settle assets. He creates enterprise blockchain solutions for institutions such as PayPal, Interactive Brokers, Meta, Mastercard, MercadoLibre, NuBank, Bank of America, Credit Suisse, Société Générale and Revolut. Paxos is a top-funded fintech company with over $540 million raised from top-tier investors including Oak HC/FT, Declaration Partners, Founders Fund, Mithril Capital, and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a holistic approach to modernizing the financial system.
Contact: Becky McClain, [email protected]