XSGD Aims to Break USD's Grip on Global DeFi

SINGAPORE - Institutional capital flows into digital assets are gaining momentum as Coinbase and StraitsX announced the launch of XSGD, a Singapore dollar-backed stablecoin, marking a pivotal development in the 2025 Token2049 Singapore event. The stablecoin, pegged 1:1 to the SGD and backed by reserves held at DBS Bank and Standard Chartered, will debut on Coinbase and Coinbase Advanced on September 29, 2025, at 19:00 UTC. This initiative aligns with Singapore's regulatory framework for single-currency stablecoins, endorsed by the Monetary Authority of Singapore (MAS), and aims to enhance cross-border financial accessibility in Asia.

XSGD is designed to reduce reliance on U.S. dollar-pegged stablecoins by enabling on-chain transactions in SGD. According to the partnership, the token will facilitate real-time local and cross-border payments, leveraging Coinbase's Ethereum Layer 2 network, Base, for low-cost, high-speed transactions. The integration with Base also supports decentralized liquidity pools, including an incentivized XSGD/USDC pool on Aerodrome Finance, a key liquidity hub on the network. This setup allows users to trade SGD-pegged assets without converting to USD, addressing a critical gap in the DeFi ecosystem for non-U.S. markets.

Regulatory compliance is a cornerstone of the XSGD rollout. StraitsX, the stablecoin's issuer, holds multiple major payment institution licenses from MAS, ensuring adherence to the upcoming Single Currency Stablecoin framework. Coinbase, which secured its own Major Payment Institution license in Singapore in 2023, emphasized the partnership as part of its broader Asia-Pacific expansion strategy. "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," said Liu Tianwei, StraitsX co-founder and CEO.

The market potential for XSGD is significant. With cross-border commerce in Asia projected to exceed $4 trillion by 2030, the stablecoin addresses growing demand for regulated, transparent settlement solutions. Over 70% of crypto holders in Singapore and Australia, as per a Coinbase-commissioned Ipsos survey, express a preference for local stablecoins to meet daily and cross-border payment needs. XSGD's launch is expected to reduce conversion fees and streamline transactions for users in SGD-based economies, fostering greater adoption of blockchain-based financial tools.

Institutional adoption is further supported by XSGD's integration with decentralized finance protocols. The token can be used in DeFi applications such as AI-driven trading platforms, on-chain asset purchases, and real-world asset tokenization. Additionally, the stablecoin's presence on Base and Aerodrome opens opportunities for institutional-grade liquidity management, aligning with trends of tokenizing traditional financial instruments.

The partnership reflects a broader shift in global finance toward localized digital assets. By introducing XSGD, Coinbase and StraitsX aim to position Singapore as a hub for non-U.S. stablecoin innovation, challenging the dominance of USD-pegged tokens in DeFi. The move also underscores Singapore's regulatory leadership in balancing innovation with compliance, a strategic advantage in the $250 billion stablecoin market. As institutions increasingly seek diversified digital asset portfolios, XSGD's launch signals a turning point in 2025 for institutional flows into DeFi ecosystems beyond the U.S. dollar.

Source: [1] Coinbase and StraitsX Launch SGD-Backed Stablecoin XSGD for Global Traders (https://coincentral.com/coinbase-and-straitsx-launch-sgd-backed-stablecoin-xsgd-for-global-traders/)

[2] Singapore Dollar-Backed XSGD Stablecoin to Launch on Coinbase on Sep 30 (https://www.businesstimes.com.sg/wealth/crypto-alternative-assets/singapore-dollar-backed-xsgd-stablecoin-launch-coinbase-sep-30)

[3] Coinbase to List Singapore Dollar-Backed XSGD Stablecoin (https://defi-planet.com/2025/09/coinbase-to-list-singapore-dollar-backed-xsgd-stablecoin/)

[4] Coinbase to Launch AUDD and XSGD Stablecoins on Sept 29, Breaking Dollar Dominance (https://coinpedia.org/news/coinbase-to-launch-audd-and-xsgd-stablecoins-on-sept-29-breaking-dollar-dominance/)

[5] Coinbase to List First Singapore Dollar Stablecoin in Collaboration with StraitsX (https://www.financemagnates.com/cryptocurrency/coinbase-to-list-first-singapore-dollar-stablecoin-in-collaboration-with-straitsx/)