Coinbase Partners with StraitsX to Launch XSGD, Singapore’s First Regulated Stablecoin

StraitsX Launches First Singapore Dollar Stablecoin on Coinbase, Marking a Major Shift in Global Payments

In a landmark moment for digital finance, Coinbase has partnered with StraitsX to launch the first Singapore Dollar-backed stablecoin, XSGD, on its platform. The move represents a significant step toward diversifying the stablecoin market beyond its U.S. dollar dominance and positions Singapore at the forefront of regulated, innovation-driven digital currency adoption.

The stablecoin, backed 1:1 by reserves held with banking giants DBS Bank and Standard Chartered, will be available to users on both Coinbase and Coinbase Advanced starting September 29 at 19:00 UTC. For everyday users and institutional players alike, the launch promises faster, cheaper, and more accessible cross-border payments.

Coinbase and StraitsX Unite on XSGD

The launch underscores Coinbase’s strategy to expand its global reach and StraitsX’s vision of creating seamless access to digital currencies tied to real-world assets. Speaking about the partnership, StraitsX CEO Liu Tianwei said the debut 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,” Liu said. “This partnership brings us closer to a truly multi-currency and frictionless global financial system that we’ve been building toward since day one.”

XSGD’s arrival on Coinbase aligns with a growing push in global finance: moving away from a singular reliance on the U.S. dollar in the digital economy. By expanding access to stablecoins pegged to regional currencies, StraitsX and Coinbase aim to broaden the scope of digital finance, enabling real-time international transactions with reduced costs and increased inclusivity.

Integration with Base Network

The rollout will also see XSGD integrated into Base, Coinbase’s Ethereum Layer 2 network. This integration is designed to facilitate smooth on-chain forex transactions, giving users access to decentralized exchanges and allowing AI-driven financial agents to operate in a permissionless, 24/7 global market.

One of the key features of this expansion is the launch of an XSGD/USDC liquidity pool on Aerodrome, Base’s central liquidity hub. This pool is expected to offer liquidity incentives backed by both the Base ecosystem and Aerodrome, encouraging adoption and deepening market activity.

For crypto traders, investors, and businesses that operate across multiple currencies, this development could represent a breakthrough in reducing friction and costs traditionally associated with foreign exchange markets.

Regulatory Backing in Singapore

Since its initial issuance in 2020, StraitsX has consistently positioned itself as a leader in compliance-driven innovation. Its approach has been reinforced by recognition under Singapore’s upcoming Single Currency Stablecoin regulatory framework. In 2024, the company was granted Major Payment Institution (MPI) licenses by the Monetary Authority of Singapore (MAS), giving XSGD a firm regulatory foundation and ensuring user trust.

This compliance-first strategy is crucial at a time when governments around the world are grappling with how to regulate stablecoins. Singapore has sought to strike a balance between fostering innovation and tackling financial crimes, setting a benchmark for other jurisdictions to follow.

Rising Popularity of Stablecoins

Stablecoins have emerged as one of the fastest-growing segments in digital finance, often viewed as a bridge between traditional banking and blockchain-based payments. Their appeal lies in stability, transparency, and utility for both retail users and institutional investors.

The momentum around stablecoins has only intensified following the support of U.S. President Donald Trump for digital assets and the introduction of regulatory bills such as the GENIUS Act, aimed at clarifying rules for the sector. Analysts suggest that XSGD’s entry into the market could spark broader interest in non-USD stablecoins, further decentralizing global financial flows.

Hassan Ahmed, Coinbase’s Country Director for Singapore, highlighted the broader impact:
“Stablecoins are redefining how payments move across borders. We’re one step closer to making local and cross-border payments instant and accessible to everyone with a phone and wallet. Enabling easy, quick FX transactions brings more of our users across the globe closer and gives them greater access to the global financial system — supporting our mission of increasing economic freedom.”

Why XSGD Matters

For years, the dominance of the U.S. dollar in crypto markets has limited the ability of businesses and individuals in Asia and other regions to operate with local-currency denominated digital assets. With the introduction of XSGD on Coinbase, traders in Singapore, Southeast Asia, and beyond will gain easier access to a stable, trusted token linked to their home currency.

This means not only faster and cheaper remittances but also new opportunities for businesses to conduct cross-border trade without relying on USD as an intermediary. Experts believe this could redefine forex markets on-chain, creating a more efficient system where currency conversions happen in real time without legacy banking delays.

Singapore’s Fintech Ambitions

Singapore has long positioned itself as a global fintech hub, leveraging its robust regulatory framework and innovation-friendly policies. The launch of XSGD on Coinbase further solidifies this status, signaling to the world that the city-state is ready to embrace the next chapter of digital finance.

By fostering locally denominated stablecoins, Singapore is not only advancing financial inclusion domestically but also setting global standards for safe and scalable crypto adoption.

Industry observers argue that this move could prompt other countries to accelerate their own stablecoin initiatives, particularly in regions where reliance on USD remains heavy. With the MAS actively involved in shaping the framework, XSGD could serve as a model for how to balance innovation, trust, and compliance in the digital economy.

What Comes Next

Looking ahead, analysts expect that XSGD’s listing on Coinbase could pave the way for further multi-currency stablecoin adoption. Integrations with decentralized finance (DeFi) platforms, e-commerce ecosystems, and international remittance providers are likely to follow.

There is also speculation that Coinbase may expand similar partnerships with issuers of other local-currency stablecoins in Asia, Europe, and Latin America. This could mark the beginning of a multi-currency stablecoin era, challenging the hegemony of USD-backed tokens like USDT and USDC.

Market participants will also watch closely how quickly liquidity builds for XSGD pairs on decentralized exchanges, and whether institutional investors adopt it for treasury and cross-border operations.

Final Thoughts

The launch of XSGD on Coinbase represents far more than the debut of another stablecoin. It is a statement of intent from both Coinbase and StraitsX to reshape the global financial landscape by decentralizing access to stable digital currencies.

With regulatory clarity from Singapore’s MAS, backing from respected financial institutions like DBS Bank and Standard Chartered, and integration into Coinbase’s ecosystem, XSGD arrives with credibility and purpose.

As the world increasingly embraces stablecoins for everyday payments, remittances, and investment strategies, XSGD’s success could be a blueprint for how digital finance evolves in the decade ahead. The question now is not whether stablecoins will play a central role in global finance, but how quickly they will scale — and which regions will lead the way.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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