Paxos and Standard Chartered team up to revolutionise stablecoin reserve management

December 16, 2024

Paxos, a leading regulated blockchain and tokenisation infrastructure provider, has partnered with Standard Chartered, a global banking and financial services giant, to enhance the reserve management for stablecoins Global Dollar (USDG) and Lift Dollar (USDL).

This collaboration aims to strengthen the infrastructure supporting Paxos’ trusted digital assets in Singapore and the UAE. Standard Chartered will provide cash management, trading, and custody services, ensuring seamless convertibility of the stablecoins to fiat currency and enhancing their global adoption.

Paxos is renowned for its rigorous reserve management practices, exclusively holding short-term, highly liquid US government securities and cash equivalents to ensure 1:1 parity with the US dollar.

USDG, issued by Paxos Digital Singapore, is substantively compliant with the Monetary Authority of Singapore’s (MAS) upcoming stablecoin regulatory framework, meeting high standards of consumer protection. Similarly, USDL, launched by Paxos International and regulated by the Abu Dhabi Global Market, delivers programmatic safe yield to its holders.

Standard Chartered’s role in this partnership extends beyond reserve management. The bank’s robust suite of transaction banking, financial markets, and securities services will support Paxos’ global tokenisation platform.

Highlighting the partnership’s importance, Adam Ackermann, head of treasury and portfolio management at Paxos, said: “As the stablecoin industry continues to attract the world’s leading enterprises, it’s more important than ever to ensure they have access to sophisticated, institutional-grade products. Standard Chartered’s commitment to risk management, compliance and operational efficiency across its world-class banking solutions is critical to Paxos as a regulated stablecoin issuer.“

John Collura, global head of banks & broker dealer sales at Standard Chartered, added: “Our partnership with Paxos reflects Standard Chartered’s commitment to shaping the future of digital finance with trust and innovation. By providing robust cash management, trading, and custody services, we’re enabling the next generation of secure and regulated digital assets solutions that drive global adoption and economic inclusion.”