SINGAPORE – Coinbase users here and across the world will gain access to the first Singapore dollar-backed stablecoin from next week.
Users of Coinbase and Coinbase Advanced will be able to purchase XSGD from 3am in Singapore on Sept 30 thanks to a partnership between Coinbase and XSGD issuer StraitsX, said the two companies on Sept 24.
Stablecoins are a type of cryptocurrency that aim to limit price volatility by pegging their value to a currency, commodity or financial instrument. They make up about 7 per cent of the crypto market share, according to BlackRock.
Singapore and Hong Kong have both been angling to secure a piece of the
US$250 billion stablecoin market
through regulatory measures.
The XSGD stablecoin is fully backed 1:1 by reserves held with DBS and Standard Chartered. It will facilitate faster, cheaper and more accessible financial services by enabling real-time local and cross-border payments, said Coinbase and StraitsX.
Cross-border commerce in Asia is expected to surpass US$4 trillion (S$5.2 trillion) by 2030, said blockchain and crypto solutions firm Ripple in May. It had added that regulated stablecoins such as XSGD were crucial to enabling real-time, transparent and compliant value exchange across markets.
Digital payment infrastructure provider StraitsX has issued the XSGD stablecoin since 2020, which has been acknowledged by the Monetary Authority of Singapore (MAS) to be compliant with the upcoming Single Currency Stablecoin regulatory framework. StraitsX received multiple major payment institution (MPI) licences from MAS in 2024.
Coinbase is the largest US-based crypto exchange and was the largest custodian of Bitcoin as at 2024. It also holds an MPI licence in Singapore.
“By enabling seamless, direct access to local currency stablecoins, we are breaking down the USD-centric barriers that have long limited on-chain FX markets,” said StraitsX co-founder and chief executive officer Liu Tianwei.
The use of XSGD will allow Singapore-based individuals and businesses to transact and manage digital assets in the Republic’s currency, with $1 converting to one XSGD.
StraitsX and Coinbase said access to XSGD through the exchange in Singapore will also provide local entrepreneurs with greater access to the global financial system through seamless and quick foreign-exchange (forex) transactions.
The stablecoin will also be issued on Base, the low-cost Ethereum Layer-2 blockchain incubated by Coinbase, which brings forex transactions on-chain.
Users will be able to access XSGD through decentralised exchanges on Base. XSGD being on Base will also mean that artificial intelligence agents will be able to power on-chain forex transactions that are permissionless and available 24/7.
A “key part” of the Base roll-out will be the launch of an XSGD/USDC pool on Aerodrome, the central liquidity hub on the Base network, with liquidity incentives supported by both Aerodrome and the Base ecosystem. USDC is another stablecoin, pegged to the US dollar.
XSGD is currently available directly from StraitsX, and through centralised exchanges such as Bitstamp and public blockchains like XRP Ledger.
THE BUSINESS TIMES
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