Paxos, a cryptocurrency brokerage firm, has received a preliminary license from regulators to offer digital payment token services in Singapore, the company said Wednesday in a statement.

The in-principle approval for a new Paxos Digital Singapore Pte. Ltd. entity from the Monetary Authority of Singapore allows the firm to offer its services to customers under the Payments Services Act (PSA) while awaiting full approval, the statement said. Upon receiving full approval to conduct business in Singapore, Paxos will partner with enterprise clients to issue a U.S. dollar-backed stablecoin, the firm's leaders said.

"Global demand for the US dollar has never been stronger, yet it remains difficult for consumers outside the US to get dollars safely, reliably and under regulatory protections," Paxos Head of Strategy Walter Hessert said in a statement.

The press release noted Paxos publishes a monthly attestation and reserve reports for its stablecoins.

Paxos' executives hope the offering will help the company court new customers at a time when demand for stablecoins is high. According to brokerage firm Bernstein, the stablecoin market is expected to grow from $125 billion to $2.8 trillion in the next five years.

The announcement comes just over a year after Paxos first received an operating license in the Southeast Asian country, which allowed it to offer tokenization, custody and trade services under the same bill as Wednesday's announcement.