In a significant move aimed at enhancing the digital currency landscape in Singapore, Coinbase has introduced Singapore dollar stablecoins to its platform through a partnership with licensed issuer StraitsX. This development marks a noteworthy expansion beyond the traditional USD-based stablecoins, providing users with a new option that facilitates local and cross-border transactions.
The newly launched StraitsX stablecoin, known as XSGD, allows Singaporean users to convert their Singapore dollars (SGD) directly to XSGD on a one-to-one basis. This feature is anticipated to streamline transactions, making it easier for residents to conduct business both locally and with international partners.
As part of its initial rollout, XSGD will be integrated onto Base, a cost-effective Ethereum Layer 2 Chain developed by Coinbase. This integration will introduce decentralized foreign exchange transactions, boosting efficiency in the handling of various currency conversions.
Additionally, a key aspect of this launch includes the establishment of an XSGD/USDC liquidity pool on Aerodrome, which serves as the central liquidity hub for the Base network. To encourage adoption and increase usage, both Aerodrome and the Base ecosystem will provide liquidity incentives.
The introduction of XSGD on Base is expected to create numerous opportunities for users and developers, allowing utilization in a variety of applications. This includes enabling artificial intelligence agents to operate on the blockchain, purchasing digital artwork, and acquiring tokenized assets such as collectibles tied to NFTs. Furthermore, it will facilitate on-chain foreign exchange transactions, enhancing the overall utility of the Base network.
Tianwei Liu, CEO and co-founder of StraitsX, expressed optimism about the launch, stating, “The launch of XSGD on Coinbase is a big step forward, not just for Singapore, but for the entire digital asset ecosystem. 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.” This sentiment underscores the broader implications of the new stablecoin for the evolving digital asset framework in Singapore and beyond.
