Daily News 19

Tag: Monetary Authority of Singapore

  • SBI Group backs payments firm dtcpay in $25 million funding round

    SBI Group backs payments firm dtcpay in $25 million funding round

    Key Highlights

    • Stablecoin payments infrastructure firm dtcpay has formally closed a $25 million Series A round with strategic participation from Japan’s SBI Group.
    • The round was initially anchored by Vertex Ventures Southeast Asia & India, with SBI entering via SBI Ventures Asset and the SBI-NTU-Kyobo Digital Innovation Fund.
    • Dtcpay holds a Major Payment Institution license from the Monetary Authority of Singapore and regulatory approvals across Europe, Hong Kong, Australia, and North America.

    dtcpay Secures $25 Million Series A to Bridge Japanese Capital and Southeast Asian Markets

    Stablecoin payments firm dtcpay announced today the formal completion of its $25 million Series A funding round, marking a significant strategic milestone with the entry of Japan’s financial conglomerate, the SBI Group. The capital raise, which was initially anchored earlier this year by Vertex Ventures Southeast Asia & India, concluded with SBI participating through its investment vehicles SBI Ventures Asset and the SBI-NTU-Kyobo Digital Innovation Fund. Existing investors Genedant Capital and Kwee Liong Tek also maintained their positions in the company, signaling continued confidence in dtcpay’s regulatory-first approach to crypto infrastructure.

    Regulated Infrastructure for Cross-Border Stablecoin Payments

    Dtcpay operates as a licensed payment institution providing essential crypto infrastructure, including asset conversion, custody solutions, and a Visa-linked card that enables holders to spend stablecoins like ordinary cash. The firm holds a Major Payment Institution license from the Monetary Authority of Singapore (MAS), alongside regulatory footprints in Europe, Hong Kong, Australia, and North America. This multi-jurisdictional licensing framework positions dtcpay as a compliant bridge for institutional and commercial stablecoin flows, addressing a critical gap in the current financial plumbing where traditional correspondent banking remains slow and costly.

    Strategic Alignment with SBI Group’s Regional Ambitions

    SBI’s involvement is widely viewed as a strategic move to secure fully regulated pipelines connecting Japanese capital with Southeast Asian commercial channels. As one of Japan’s most prominent financial services groups, SBI has been actively expanding its digital asset and blockchain footprint. By backing dtcpay, SBI gains exposure to a regulated stablecoin payment network that can facilitate high-speed, low-cost cross-border transactions—offering a viable alternative to legacy SWIFT-based correspondent banking relationships, provided the intermediary meets rigorous regulatory standards across multiple jurisdictions.

    Why This Matters

    The closure of this Series A round underscores a growing convergence between traditional financial giants in Northeast Asia and regulated crypto-native infrastructure providers in Southeast Asia. Stablecoins are increasingly recognized not merely as trading instruments but as settlement rails for real-world commerce and treasury management. Dtcpay’s multi-license strategy—anchored by the MAS Major Payment Institution license—provides the regulatory credibility that institutions like SBI require to engage meaningfully with public blockchain networks. The partnership also highlights Singapore’s continued role as a regulatory hub for digital asset innovation in the Asia-Pacific region. Looking ahead, the fresh capital is expected to accelerate dtcpay’s product expansion, licensing efforts in new jurisdictions, and the scaling of its Visa card program to enterprise clients.

    Frequently Asked Questions

    Who led dtcpay’s $25 million Series A round?

    The round was initially anchored by Vertex Ventures Southeast Asia & India, with strategic participation from Japan’s SBI Group through SBI Ventures Asset and the SBI-NTU-Kyobo Digital Innovation Fund. Existing backers Genedant Capital and Kwee Liong Tek also participated.

    What licenses does dtcpay hold?

    Dtcpay holds a Major Payment Institution license from the Monetary Authority of Singapore, along with regulatory approvals in Europe, Hong Kong, Australia, and North America.

    What is the strategic significance of SBI Group’s investment?

    SBI’s investment signals a move to establish regulated, high-speed stablecoin payment corridors linking Japanese capital markets with Southeast Asian commercial channels, offering an alternative to traditional correspondent banking.

  • Gemini Secures Singapore Payment License for Crypto Services

    Gemini Secures Singapore Payment License for Crypto Services

    Crypto exchange Gemini has secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), finalizing a regulatory process that began with in-principle approval nearly two years ago.

    License Details and Regulatory Scope

    The license was granted to Gemini Digital Payments Singapore, the exchange’s locally incorporated entity. According to the MAS Financial Institutions Directory, the company is now authorized to provide digital payment token services and cross-border money transfers.

    Unlike standard payment institutions, MPI license holders can operate regulated payment services without transaction-volume caps. However, MAS subjects major payment institutions to more comprehensive regulatory requirements, reflecting the greater risks associated with the scale of their operations.

    Executive Perspective on Singapore Strategy

    Gemini President and co-founder Cameron Winklevoss said the exchange has served customers in Singapore since 2020, while CEO Tyler Winklevoss described the country as a strategic hub for serving retail and institutional clients. The exchange offers spot crypto trading, digital asset custody, and over-the-counter services in the market.

    Regulatory Timeline

    The full license follows MAS’ in-principle approval of Gemini’s application in October 2024. In April 2025, Gemini migrated its Singapore customers from Gemini Trust Company—which had operated under an exemption—to its locally incorporated entity while working toward final regulatory approval.

  • Circle Acquires Tazapay in $400M All-Stock Deal

    Circle Acquires Tazapay in $400M All-Stock Deal

    Circle Agrees to Acquire Tazapay for $400 Million in All-Stock Deal

    Circle has agreed to acquire Singapore-based payments company Tazapay for $400 million in an all-stock transaction, according to a September 8 announcement and accompanying U.S. regulatory filing. The acquisition is expected to close in 2027, subject to customary conditions and regulatory approvals, including clearance from the Monetary Authority of Singapore (MAS).

    Circle plans to leverage Tazapay’s banking connections and local payout infrastructure to extend USDC-based payments across Asia-Pacific and emerging markets. According to Circle, Tazapay processes more than $25 billion in annualized payment volume and supports payout rails across over 100 markets.

    Circle has signed an agreement to acquire @Tazapay. 60+ banking and fintech partners. 100+ payment markets. 60%+ stablecoin TPV as of July 31, 2026. This accelerates the breadth and depth of CPN globally. https://t.co/L1AufIzus7

    — Jeremy Allaire – jerallaire.arc (@jerallaire) September 8, 2026

    Transaction Structure and Payment Terms

    Circle disclosed the purchase terms through a Form 8-K filing with the U.S. Securities and Exchange Commission. The agreement was signed on September 4 through Taurus Acquisition, an indirect wholly owned Circle subsidiary. The $400 million consideration will consist entirely of Circle Class A common stock, with the final number of shares calculated using Circle’s volume-weighted average closing price over the 20 trading days preceding completion.

    The price remains subject to adjustments for Tazapay’s unpaid debt, transaction expenses, and available cash. Circle will initially withhold shares equal to 5% of the consideration for specified indemnification claims, with another 3% held for additional claims. The first holdback is scheduled for release in stages over 18 months after closing, while the additional shares could remain restricted for up to four years, subject to any unresolved claims.

    Circle also plans to grant $25 million in restricted stock units to selected Tazapay employees after completion. Those awards will vest in eight quarterly installments, beginning around 27 months after closing.

    Tazapay’s Payment Infrastructure and Market Reach

    Tazapay provides cross-border payment infrastructure to payment service providers, financial institutions, online marketplaces, and technology platforms. Its network includes more than 60 banking and fintech partners. Circle said approximately 60% of Tazapay’s transaction volume already involves stablecoins, and combining the platform with USDC could connect blockchain settlement with local bank accounts and payment methods in markets where recipients still require domestic currencies.

    Tazapay’s reported payment volume has expanded quickly. The company stated in an August 2025 funding release that it processed more than $10 billion annually; Circle now places the figure above $25 billion. These numbers are company-reported metrics and have not been presented as independently audited transaction data. The companies also did not disclose Tazapay’s revenue, profit, or contribution expected after completion.

    Circle Ventures previously invested in Tazapay. The Singapore company also raised capital from Ripple, Peak XV Partners, Norinchukin Capital, GMO VenturePartners, January Capital, and ARC180.

    Strategic Fit with Circle Payments Network

    Tazapay has worked as a design partner for Circle Payments Network (CPN) since 2025. Circle introduced the network to support cross-border transactions using stablecoins and compatible domestic payment systems. As previously reported, Circle Payments Network introduced real-time stablecoin settlement for business payments, remittances, treasury transfers, and payroll. Acquiring Tazapay would give Circle direct ownership of infrastructure that already connects to that network.

    Circle has also expanded through partnerships, including Nium connecting USDC settlement with payouts across 190 countries and a Fireblocks integration opening local currency payouts across more than 50 countries. The Tazapay transaction differs because Circle is acquiring the provider rather than connecting through a commercial partnership. Ownership could give Circle greater control over product development, routing, and institutional integrations, though whether it produces those benefits depends on regulatory approval and successful integration.

    Circle claimed the combination would help make USDC the default payment rail for cross-border commerce. That statement is forward-looking. USDC still competes with bank transfers, card networks, other stablecoins, and regional payment systems.

    Regulatory Approval and Closing Conditions

    MAS approval is the clearest outstanding requirement. The SEC filing also refers to other regulatory clearances, employee retention conditions, and the absence of a material adverse change before closing. The agreement allows either party to terminate the transaction if it has not closed within an initial nine-month period. That deadline may be extended, but not beyond 15 months, when specified regulatory approvals remain outstanding. The agreement does not include a termination fee.

    Circle said Tazapay customers should experience no immediate changes to their services, APIs, pricing, or support. The companies have not announced an integration schedule or identified which payment corridors will receive USDC support first.

    Market Reaction and Next Steps

    Circle shares closed at $96.18 on September 8, down approximately 5.8%. The shares traded between $95.20 and $101.14 during the session. The broader decline cannot be attributed solely to the acquisition without additional evidence.

    The next verified developments will likely include regulatory filings, MAS approval, and Circle’s issuance of shares at closing. Circle must also file a prospectus supplement covering the resale of shares delivered to Tazapay sellers and equity holders.

  • Singapore Proposes 100% Reserves and Yield Ban for Stablecoin Issuers

    Singapore Proposes 100% Reserves and Yield Ban for Stablecoin Issuers

    Singapore’s Monetary Authority of Singapore (MAS) has reaffirmed that stablecoins may be used for payments but should not be marketed to the public as investment products or yield-generating instruments similar to bank deposits.

    “MAS’s stance remains that while stablecoins may be used for payments, they should not be used by the public as investment products or for the generation of yield, akin to bank deposit,” the bill states.

    The position is part of MAS’s latest consultation on a proposed regulatory framework for stablecoins. The framework is intended to support the use of reliable, well-regulated stablecoins in tokenized financial markets while limiting risks to users and the wider financial system.

    “Trusted and well-regulated stablecoins can serve as a credible settlement asset in tokenized financial markets, while mitigating risks to users and the broader financial system,” said Ho Hern Shin, MAS deputy managing director for financial supervision.

    Limited recognition for some foreign stablecoins

    The consultation also proposes limited recognition for a small number of foreign stablecoins regulated under comparable overseas frameworks. MAS has not yet determined how that recognition would operate in practice, how responsibilities would be allocated for jointly issued tokens or whether transitional arrangements would apply to existing issuers based in Singapore.

    MAS first consulted on its proposed stablecoin rules in October 2022 and published its response to feedback in August 2023. The latest consultation closes on Oct. 16. The central bank will consult separately on subsidiary legislation at a later date, and no implementation date has been announced.

    Stablecoins tested in Singapore

    The proposed rules come as regulated stablecoins are already being tested in Singapore. Ripple is exploring whether its RLUSD stablecoin can replace manual payment processes that have slowed cross-border trade for decades through Singapore’s central bank sandbox, a controlled environment where companies test new financial technology.

    The testing forms part of BLOOM, an MAS initiative designed to expand settlement capabilities for tokenized bank liabilities and regulated stablecoins.