SINGAPORE, 17 JULY 2024 ––  StraitsX USD Issuance Pte. Ltd., StraitsX SGD Issuance Pte. Ltd., and StraitsX Payment Services Pte. Ltd. received Major Payment Institution (MPI) licences while Xfers Pte. Ltd. obtained approval to vary its existing MPI licence to include account issuance service, domestic money transfer service, cross-border money transfer service, merchant acquisition service, and digital payment token service. These licences allow StraitsX to provide various digital payment token services. Additionally, StraitsX has launched XUSD, a fiat-pegged USD stablecoin, as part of its initiative to digitise currencies integral to global trade.

‍Expanding the Global Payments Economy

The recent MPI licences granted to StraitsX represent a significant regulatory milestone, enabling StraitsX to expand its digital payment token services, streamline fiat payment processes, and enhance stablecoin solutions. StraitsX is positioned at the forefront of the digital currency revolution, offering secure and efficient financial solutions for regional and global markets. With a robust network of licensed entities now able to conduct account issuance services, e-money issuance, merchant acquisition services, domestic and cross-border money transfers, and digital payment token services, StraitsX can comprehensively empower users across Southeast Asia to actively participate in the global digital economy. 

Public Issuance of XUSD

In addition to securing the MPI licences, StraitsX is launching its XUSD stablecoin to expand digital currency use in Southeast Asia. Deployed on Ethereum in February 2024, XUSD is available as an ERC-20 token, with plans to expand to additional blockchain networks and DeFi protocols for greater interoperability and scalability. 

Designed to facilitate swift, global, and 24/7 payments, the launch of XUSD marks the continued expansion of stablecoin utility in digital payments. XUSD will significantly strengthen StraitsX’s foothold in Southeast Asia’s cross-border payments economy given the stablecoin’s ability to bridge ASEAN’s financial ecosystem with the stability of the world’s primary reserve currency. Each XUSD is pegged to one United States Dollar and is currently available for minting and redemption on the StraitsX platform today. In addition, XUSD is listed on multiple decentralised and centralised exchanges, including Uniswap and MEXC, with other exchanges to be included in the coming months.

The XUSD stablecoin has been acknowledged by MAS to be compliant with the upcoming stablecoin regulatory framework. Similar to its existing XSGD stablecoin offering, the single-currency pegged stablecoins (SCS) will be pegged 1:1 to its underlying currency. To ensure transparency and security, the reserve assets will be held and maintained at a level equal to at least 100% of the outstanding SCS in circulation, subjected to independent external audit. StraitsX is in partnership with DBS for cash management and custody of the reserve assets backing the SCS, and aims to collaborate with additional banking partners to further enhance essential payment rails that facilitate convenient access to the SCS, and the safeguarding arrangement of the reserve assets.  ‍

Tianwei Liu, CEO and Co-founder of StraitsX said, “The launch of XUSD and our recent MPI licences represent major steps forward in simplifying and securing payment settlements. These achievements demonstrate our commitment to building a safe and compliant digital asset ecosystem in Southeast Asia, and the approval from the Monetary Authority of Singapore further highlights our dedication to trust and compliance. Beyond reinforcing our commitment to supporting a robust digital asset ecosystem, we aim to set high standards for a more inclusive and accessible financial industry, and this is only the beginning.”

Jason Tay, Head of Commercial, StraitsX, added, “Stablecoins will play an increasingly pivotal role in the global financial landscape. We believe that the addition of XUSD will enable a leap forward in speed, security, and transparency for payments and settlements within Southeast Asia and drive greater interoperability across platforms and networks.” 

By leveraging blockchain technology, StraitsX provides clients with a reliable and efficient transaction method via USD-backed stablecoins. As the pioneering payments infrastructure for the digital assets space in Southeast Asia, StraitsX’s innovative payment solutions offer personal and business account holders to mint, redeem, and swap stablecoins, manage payments, and access digital asset platforms. 

About StraitsX

StraitsX is the pioneering payments infrastructure for the digital assets space in Southeast Asia. StraitsX holds Major Payment Institution licences issued by the Monetary Authority of Singapore and is part of the Fazz’s ecosystem of financial services which powers business banking in Southeast Asia. StraitsX offers personal and business account holders to mint, redeem, and swap stablecoins, manage payments as well as connect their accounts to digital asset platforms. Business accounts can also access B2B API-enabled payment rails for digital asset platforms. StraitsX USD Issuance Pte. Ltd., StraitsX SGD Issuance Pte. Ltd., and StraitsX Payment Services Pte. Ltd. are affiliate companies of Xfers Pte Ltd.