Grab and StraitsX confirmed a deal to explore developing Web3-enabled payment infrastructure across Asia, the companies announced Tuesday.
Summary
- Grab and StraitsX signed an MOU to develop Web3-enabled payment infrastructure in Southeast Asia, integrating digital asset wallets and stablecoin settlements for consumer transactions through the Grab app.
- The initiative aims to enable GrabPay merchants to accept stablecoin payments across multiple markets, with potential for users to hold and transact with stablecoins like XSGD and XUSD, pending regulatory approval.
- The collaboration aims to reduce cross-border settlement fees, improve transaction transparency, and enhance interoperability with existing Web2 payment rails.
The proposed collaboration aims to integrate digital asset wallets and stablecoin settlement into consumer transactions through two components: a Web3-connected wallet to be integrated within the Grab app, and a stablecoin-based payment network designed to support compliant clearing and settlement across participating markets.
Under the memorandum of understanding, Singapore-based StraitsX will support technical development of Web3 wallets within the Grab platform, with functionality for payment processing, clearing, and settlement via smart contracts. The initiative would enable GrabPay merchants across major Asian markets to accept stablecoin payments from domestic and international consumers through Web3 wallets.
Subject to regulatory approval, Grab users may be able to hold and transact with stablecoins including StraitsX-issued XSGD and XUSD, which are designed for enterprise-grade cross-border settlement, and potentially convert between fiat and other stablecoins within the app, according to the announcement.
“By uniting Grab’s scale with StraitsX’s established stablecoin infrastructure, proven track record in market expansion and network of partners across broader Asia, we can deliver a financial network that is faster, cheaper, more inclusive and regulatory-compliant,” said Tianwei Liu, co-founder and CEO of StraitsX.
Liu expects the partnership to bolster the growth of Southeast Asia’s digital economy “on an interoperable payments infrastructure of the future.”
Southeast Asia’s payment systems
The companies said the Web3-enabled payment layer aims to address inefficiencies in Southeast Asia’s payment systems, where transactions remain fragmented and merchant-card payment fees for credit cards are higher than those on real-time payment rails. The proposed network would offer real-time, foreign exchange-transparent cross-border settlement.
The integration is designed to provide merchants with Web3-compatible wallets connected to existing Web2 payment rails and Web3 settlement. The collaboration will address anti-money laundering and counter-terrorism financing requirements to mitigate risks from the integration, according to the announcement.
“Grab sees potential for Web3 technologies to improve cross-border retail payments while providing a familiar experience for users. We look forward to working with StraitsX to bring their capabilities and expertise to bear in solving these problems for our consumers and merchants,” said Kell Jay Lim, head of Grab Financial, in a prepared statement.
The companies said they plan to advance a shared roadmap to expand adoption and interoperability across key Asian markets, building on a common foundation for settlement and digital asset connectivity.
Source: https://crypto.news/southeast-asia-stablecoin-grab-straitsx-web3/