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Coinbase To List Singaporean Dollar Stablecoin For Trading

5 hours ago
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Coinbase and StraitsX launch XSGD on Base, offering 1:1 SGD conversion, MAS approval, and new DeFi use cases for Singapore’s market.

 

Coinbase and StraitsX have partnered to launch XSGD, a stablecoin backed by the Singapore dollar. 

The rollout shows Coinbase’s push into the Asia-Pacific market and introduces one of the few non-USD stablecoins with global access. 

XSGD will go live for users on Coinbase and Base starting September 29.

XSGD Stablecoin Brings Local Currency to Coinbase

The XSGD is designed to give users direct access to the Singapore dollar on-chain. It is backed 1:1 with reserves held at DBS Bank and Standard Chartered. 

StraitsX first issued the token in 2020, but its listing on Coinbase and Base expands availability on a much larger scale.

Coinbase users in Singapore will now be able to convert SGD to XSGD instantly. This feature removes the need to route through USD first and reduces the costs and friction for both individuals and businesses.

Regulatory Approval Enhances Trust

The Monetary Authority of Singapore (MAS) has recognised XSGD as compliant with the upcoming Single Currency Stablecoin framework. 

This regulatory clarity gives users confidence that the stablecoin is both secure and legally recognised.

Compliance is a major factor for institutional adoption. 

By making sure of full alignment with Singapore’s financial rules, XSGD could see faster integration into both centralised finance and DeFi applications.

Launch on Base Expands DeFi Utility

Coinbase is issuing XSGD on Base, its Ethereum Layer 2 blockchain. This gives the token access to a fast and cheap network while keeping it interoperable with Ethereum-based assets.

One of the first liquidity pools will pair XSGD with USDC on Aerodrome Finance. Incentives from both Aerodrome and Base will also help attract liquidity providers.

These pools create opportunities for on-chain foreign exchange, letting users swap between SGD and USD equivalents without leaving DeFi platforms.

Expanding Use Cases Beyond Payments

XSGD is more than a transactional tool. Coinbase and StraitsX show how it can support AI-driven applications, digital art purchases and tokenised real-world assets. These use cases go beyond currency conversion and bring practical utility to the token.

Developers on Base can integrate XSGD into defi applications, creating products that cater to regional markets. 

This launch shows Coinbase’s growing focus on Asia-Pacific. By partnering with StraitsX (which has experience in regional payments), Coinbase gains an advantage in connecting international infrastructure with local expertise.

Both companies are licensed as Major Payment Institutions in Singapore, which has strengthened their credibility. Coinbase is using this partnership to expand beyond its US-centred operations and tap into one of the fastest-growing digital asset hubs in the world.

What Users Can Expect from XSGD

Starting September 29, Coinbase and Coinbase Advanced will support XSGD deposits, withdrawals and trading. 

On-chain users can access the token through Base and use it within liquidity pools like XSGD/USDC.

For individuals, the main benefit is direct 1:1 conversion from SGD. 

For businesses, it means cheaper cross-border payments and access to cross-border DeFi while staying in their native currency.

Further Implications for Stablecoin Markets

The arrival of XSGD introduces competition into a market that was already dominated by USD-backed tokens. By proving that regulated, region-specific stablecoins can succeed, Coinbase and StraitsX may even inspire similar projects tied to other national currencies.

If adoption grows, stablecoins could grow from being dollar-centric to representing a more diverse mix of fiat currencies. 

This shift would create new frontiers for cross-border trading, remittances and DeFi as a whole.

Source: https://www.livebitcoinnews.com/coinbase-to-list-singaporean-dollar-stablecoin-for-trading/