Singapore’s stablecoin market has made a significant leap forward with the recent collaboration between Coinbase and StraitsX, which has resulted in the launch of XSGD—the first stablecoin backed by the Singapore dollar and reportedly recognized by the Monetary Authority of Singapore (MAS). This new initiative not only enhances Coinbase’s stablecoin offerings but also expands cross-border payment options for its users.
The launch is set to take place on September 29, with trading starting at 19:00 UTC. XSGD will be available on both Coinbase and Coinbase Advanced, making this the exchange’s first listing of a Singapore dollar-pegged digital asset. Hassan Ahmed, the Country Director of Coinbase Singapore, emphasized the importance of stablecoins in transforming payment systems. He noted that the integration of XSGD will help make local and international payments more instantaneous and accessible for users equipped with just a phone and a digital wallet.
Pegged one-to-one to the Singapore dollar, XSGD allows users to transact in their local currency without the need to convert to US dollars. This feature aims to mitigate exposure to currency fluctuations and supports both domestic transactions and global foreign exchange activities. StraitsX has pitched the token as a game-changer for facilitating seamless transactions in both local and international markets.
In addition to its expected logistical benefits, XSGD will be issued on Base, which is Coinbase’s Ethereum Layer 2 network. This integration is poised to support decentralized foreign exchange trading and enable liquidity pools, including an incentivized XSGD/USDC pool on Aerodrome, Base’s central liquidity hub. The joint efforts of Coinbase and StraitsX align with Coinbase’s broader mission to enhance economic freedom globally.
Both firms are compliant with Singapore’s regulatory framework; Coinbase has held a Major Payment Institution license since 2023, while StraitsX received multiple licenses in 2024. According to Tianwei Liu, the CEO and Co-Founder of StraitsX, this partnership aims to dismantle the long-standing USD-centric barriers in on-chain foreign exchange markets.
As part of its ongoing Asia-Pacific expansion, Coinbase has indicated that more products and services associated with StraitsX will be introduced in the coming months. The introduction of XSGD marks a notable expansion in the available stablecoin options on Coinbase, fostering greater access to digital financial systems for users in Singapore and beyond.
