Singapore’s pioneering Singapore dollar-pegged stablecoin, XSGD, issued by digital payment infrastructure provider StraitsX, officially launched on Coinbase on October 1, 2025, marking a significant milestone in bridging traditional finance with blockchain technology. This debut provides global users with access to a regulated, 1:1 SGD-backed digital asset, enabling seamless crypto-to-SGD conversions and fostering faster, cheaper cross-border payments amid the growing stablecoin market valued at around $250 billion.

Issued since 2020, XSGD is fully backed by reserves held at DBS Bank and Standard Chartered Bank, ensuring each token maintains parity with the Singapore dollar through 100% fiat reserves safeguarded in licensed institutions. The stablecoin has been acknowledged by the Monetary Authority of Singapore (MAS) as substantively compliant with the upcoming Single Currency Stablecoin regulatory framework, which mandates full reserve backing, redemption at par, and rigorous audits—a framework MAS introduced in 2023 to promote safe innovation. StraitsX, holding multiple Major Payment Institution licenses from MAS since 2024, leverages this compliance to position XSGD as a trustworthy bridge for local and international transactions.

Integration with Coinbase and Expanded Accessibility

The partnership between Coinbase and StraitsX allows users on Coinbase and Coinbase Advanced to purchase and trade XSGD directly, with trading opening at 10:00 AM Singapore time on October 1. Notably, XSGD is also issued on Base, Coinbase’s low-cost Ethereum Layer-2 network, enabling decentralized foreign exchange (FX) transactions and liquidity pools such as the XSGD/USDC pair on Aerodrome, Base’s central liquidity hub, backed by incentives from the ecosystem. Coinbase and StraitsX plan to jointly develop additional liquidity pools across currency corridors, reducing FX spreads by up to 90% compared to traditional SGD/USDC rails and supporting 24/7 permissionless on-chain trading.

This integration empowers Singaporean entrepreneurs, businesses, tourists, and digital platforms with instant crypto-to-SGD conversions, mitigating foreign exchange risks and promoting financial inclusion by allowing transactions in local currency without USD intermediaries. Hassan Ahmed, Country Director of Coinbase Singapore, highlighted how stablecoins like XSGD are redefining cross-border payments, while StraitsX CEO Tianwei Liu emphasized breaking down USD-centric barriers in on-chain FX markets.

Broader Use Cases and Regulatory Momentum

Beyond trading, XSGD unlocks innovative applications on Base, including AI agent-powered transactions, digital art purchases, and real-world asset (RWA) tokenization linked to NFTs, all while maintaining regulatory compliance. It also underpins practical services like OKX Pay, Singapore’s first stablecoin scan-to-pay solution launched concurrently, allowing users to spend USDC or USDT at GrabPay merchants via SGQR codes. With interoperability across blockchains like Ethereum, Polygon, and now Base, XSGD supports DeFi protocols, liquidity provision, and global remittances, processing billions of on-chain transactions since inception.

Singapore’s proactive stance, including MAS’s forthcoming legislative amendments and public consultation, positions the city-state as a leader in regulated stablecoin innovation, potentially growing the overall market pie rather than competing directly with USD-pegged tokens. As projections suggest the stablecoin sector could reach $2 trillion by 2028, XSGD’s launch signals a shift toward multi-currency digital economies, enhancing Singapore’s role in global fintech.

Implications for Global Finance

The availability of XSGD on Coinbase not only localizes crypto access for Singapore users—offering free SGD-to-XSGD conversions—but also attracts international traders seeking diversified stablecoin options amid rising APAC adoption. This move aligns with broader trends, such as similar launches of AUDD on Coinbase, underscoring a push for nation-state currencies on-chain to support efficient, compliant value transfer. As StraitsX integrates with over 120 platforms, XSGD exemplifies how regulated stablecoins can drive enterprise adoption, lower costs, and pave the way for a more inclusive digital financial system.

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