Cryptocurrency exchange OKX has unveiled an innovative payment service in Singapore, enabling customers to utilize stablecoins such as USDT and USDC for transactions at GrabPay merchants through the newly launched OKX Pay system.
This development allows users to make payments that are instantly converted into XSGD, a stablecoin pegged to the Singapore dollar, before being transferred to merchants in SGD. This is a significant milestone, marking the first time stablecoins are directly accepted via GrabPay in Singapore, which could have broader implications for the integration of cryptocurrency into everyday commerce.
OKX SG, the local arm of the global exchange, launched the OKX Pay service, a scan-to-pay feature that facilitates the use of digital payment tokens (DPTs) for routine purchases. The service is seamlessly integrated into GrabPay’s SGQR merchant system, allowing customers to scan codes and pay using stablecoins.
From daily coffee runs to grocery shopping, the functionality enables users to engage in real-world transactions effortlessly. Customers can utilize the OKX app to scan GrabPay SGQR codes, initiating a conversion of their digital currencies into XSGD, followed by settlement in Singapore dollars. Notably, merchants do not have to deal with cryptocurrencies directly, simplifying the payment process while ensuring compliance with local regulations.
Gracie Lin, CEO of OKX SG, highlighted the initiative’s significance, stating that OKX Pay fulfills an essential consumer need by broadening the application of DPTs beyond merely trading or investing. She emphasized that this service transforms everyday activities into opportunities for integrating cryptocurrency seamlessly into daily life.
The technological framework supporting this innovative system is known as Purpose Bound Money (PBM), which embeds programmable conditions into transactions. This mechanism ensures that payments are validated in real-time and comply with regulatory standards while allowing for a smooth settlement process for merchants, maintaining their existing operational workflows.
Tianwei Liu, CEO and co-founder of StraitsX, articulated that the launch represents not merely a new payment option but a fundamental blueprint for how stablecoins could reshape global commerce. Liu emphasized the essential elements of trust, speed, and interoperability that stablecoins bring to the payment sector.
Lim Kell Jay, Grab’s Regional Head of Financial Group, also acknowledged the collaboration’s significance, underscoring Grab’s commitment to enhancing payment experiences for both consumers and small to medium-sized businesses.
In a broader perspective, a recent report has observed a growing trend in the utilization of stablecoins for various applications, including merchant payments, cross-border remittances, and on-chain settlements. Currently, these activities represent a modest portion of the overall market, yet stablecoin transaction volumes are soaring, with significant monthly transaction figures reported by major financial institutions.
This collaboration highlights Singapore’s emerging role as a hub for financial innovation, where regulated entities like StraitsX, OKX SG, and Grab are collectively exploring mainstream applications for digital currencies.
In summary, the integration of OKX Pay into the GrabPay platform signifies a transformative shift in the adoption of cryptocurrency in everyday transactions. This seamless and compliant payment process could pave the way for broader acceptance of digital money, enhancing its presence in daily financial activities without disrupting existing systems.
