In a groundbreaking move for digital finance in Singapore, OKX SG has officially launched OKX Pay, a scan-to-pay service enabling stablecoin transactions at various GrabPay merchants across the country. This innovation allows customers to make everyday purchases using stablecoins like USDC and USDT, marking a significant milestone as Singapore’s first major integration of stablecoin payments within a merchant ecosystem.
The introduction of OKX Pay empowers users to transact with USDC directly at GrabPay locations. Utilizing the GrabPay SGQR code within the OKX app, shoppers can initiate payments that are converted in real time into XSGD, a Singapore dollar-backed stablecoin issued by StraitsX. This conversion ensures that merchants receive payments in Singapore dollars, effectively removing the need for them to deal with digital tokens directly. The system is designed around the Purpose-Bound Money (PBM) framework, incorporating compliance measures that streamline transactions while ensuring regulatory adherence.
GrabPay merchants, which encompass a range of outlets from cafés to hawker stalls, are now part of this evolving payment landscape. This collaboration enhances the utility of USDC, enabling faster transaction times for customers and maintaining local currency settlements for merchants. The endeavor links traditional financial systems with crypto assets, reinforcing the growing intersection of digital currencies and commerce.
The service also accommodates payments made in USDT, utilizing the same scan-to-pay process. Similar to USDC transactions, payments in USDT are converted to XSGD before reaching merchants, ensuring compliance with local regulations. With this feature, OKX Pay offers enhanced flexibility for users of digital assets, simplifying the transition from cryptocurrency holdings to everyday spending.
OKX operates under a Major Payment Institution license granted by the Monetary Authority of Singapore, providing a regulated framework that bolsters trust in its payment services. This legal backing fosters transparency in the processing of stablecoin transactions and strengthens Singapore’s stature as a center for innovative, regulated digital currency solutions.
Central to the operation of OKX Pay is XSGD, which serves as the intermediary stablecoin. During each transaction involving USDC or USDT, funds are first converted to XSGD, ensuring compliance with Singapore’s regulatory standards. XSGD, which is fully backed 1:1 by reserves held at reputable banks like DBS and Standard Chartered, guarantees transactional reliability. The PBM framework enables automated compliance checks, enhancing security for both consumers and merchants alike.
Moreover, the launch aligns with Singapore’s Project Orchid, a government initiative focused on programmable currency solutions. OKX Pay’s alignment with this project highlights how innovations from the private sector can effectively support national digital finance goals. The partnership between OKX SG, Grab, and StraitsX offers a promising model for the global adoption of stablecoin transactions, paving the way for a more integrated financial ecosystem in Singapore and beyond.
