XSGD is now available natively on Hedera

The StraitsX Singapore Dollar (XSGD) on Hedera is a stablecoin brought to you by StraitsX, a Southeast Asia based digital asset payment infrastructure. XSGD is one of the largest Southeast Asian stablecoin by market capitalization today.

StraitsX's fully collateralized one-for-one stablecoins improve on the existing model of money. Money in most modern societies performs three main functions: unit of account, store of value, and medium of exchange. Through enabling users to convert fiat money seamlessly into widely accepted Digital Ledger Technology (DLT)-enabled digital tokens, StraitsX improves on these three key functions of regular money for ASEAN markets. StraitsX’s stablecoins framework allows fiat to interact with smart contracts, giving developers a viable way to use real-world currencies in decentralised applications. For holders of XSGD, they will be able to tap into a number of benefits.

A Southeast Asian option to cost-efficient cross-border settlement

XSGD on Hedera offers the benefits of a Southeast Asian fiat-backed stablecoin to end-users and applications built on the Hedera network, enabling instant cross-border settlement. By using XSGD on Hedera, applications can expect high transaction scalability, instant settlement times, and low, predictable transaction fees. 

Enabling instant cross-border settlement also removes the need for billions required to be locked in as collateral, as often characterised in foreign exchange markets of today. This paves the way for more decentralised applications to be a part of a more cost-efficient global commerce and trade ecosystem. 

Use Cases and Applications

The benefits of XSGD on Hedera contribute to a flourishing ecosystem of applications that offer real-time XSGD stablecoin payments. For users, this means micropayments for Southeast Asian users become increasingly viable. A limitation of fiat-based digital systems commonly used today is the number of available decimals, using the cent as the smallest unit of account in most cases. By using XSGD and other stablecoins, consumers can be charged more precisely, giving them greater freedom in how much they want to consume and pay.

XSGD on Hedera also contributes to greater financial inclusion by allowing more unbanked or underbanked individuals around the region to transact with stablecoins. Many platforms require consumers to have bank accounts for transactions, preventing unbanked individuals from accessing these services. XSGD is programmable for offline compatibility, meaning XSGD can be transferred immediately via an “offchain” signing, and the transaction can be verified on the blockchain later.

Sign up for a StraitsX account to begin minting XSGD on the Hedera blockchain.

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