Introduction

USD-denominated stablecoins dominate the global market, making up over 94% of all active stablecoins in circulation as of January 2024. But while they offer a convenient bridge between traditional finance and crypto, they come with significant tradeoffs, especially for users outside the issuer’s jurisdiction.

Most of these stablecoins are backed by fiat reserves held in foreign banks, often with limited transparency or regulatory oversight. Users worldwide are expected to place blind trust in issuers to manage these reserves responsibly and remain compliant with financial regulations. In many cases, resolving disputes or defaults is complicated by cross-border legal hurdles and practical issues like time zones, language barriers, and slow response times. This leaves users with little assurance of accountability or recourse if things go wrong.

StraitsX aims to change that by offering a stablecoin infrastructure tailored for Southeast Asia. Through its U.S. Dollar-pegged stablecoin, XUSD, StraitsX delivers a fully regulated and localized alternative to the dominant global players.

What is StraitsX USD (XUSD)?

XUSD is a stablecoin issued by StraitsX. It is pegged 1:1 to the U.S. Dollar and operates on the Ethereum (ERC-20) and Binance Smart Chain (BEP-20) networks. It’s designed to facilitate digital payments, trading, and remittances, particularly in Southeast Asia. StraitsX USD is fully backed by U.S. Dollar reserves held in local and regulated financial institutions and complies with Singapore’s financial regulations.

About StraitsX

Source: StraitsX

StraitsX is a payments infrastructure company for digital assets in Southeast Asia. It operates as a Major Payment Institution licensed by the Monetary Authority of Singapore. The company offers personal and business accounts for transferring and holding funds and connecting accounts to digital asset platforms.

StraitsX also issues the Singapore Dollar-backed stablecoin, XSGD, and the Indonesian Rupiah-backed stablecoin, XIDR.

StraitsX was developed in 2020 by Xfers, a financial technology company, as a platform for digital asset payments. In March 2021, Xfers merged with the Indonesian startup Payfazz, forming Fazz Financial Group (FFG). StraitsX is now a part of Fazz and is backed by investors, including Tiger Global, Insignia Venture Partners, B Capital, and BRI Ventures.

StraitsX Team

Liu Tianwei

Liu is the co-founder of StraitsX and previously worked as a software engineer at Amazon Lab126. He is also the CEO of Xfers, StraitsX’s parent company. Liu graduated from the National University of Singapore with a Computer and Electronics Engineering degree.

Kenny Chan

Kenny is the Head and General Manager at StraitsX and holds a Bachelor’s Degree in Economics from the University of Pennsylvania, The Wharton School, United States of America.

Yan Yi Seow

Yan is the Head of Product Engineering at StraitsX and holds a Bachelor’s Degree in Computer Engineering from the National University of Singapore.

Features of StraitsX USD

Multi-Chain Support

XUSD is available on Ethereum (ERC-20) and Binance Smart Chain (BEP-20) for seamless transactions across different ecosystems.

Regulated

XUSD is issued by StraitsX, a licensed Major Payment Institution (MPI) under the Monetary Authority of Singapore (MAS).

Stable

The issuer guarantees XUSD stability, as it is backed 1:1 by US dollar deposits and cash-equivalent reserves held in regulated financial institutions.

Reliable

XUSD’s fiat reserves can be verified with its monthly attestation reports conducted by an independent auditor. Quantstamp has also thoroughly audited its smart contract, ensuring its security and reliability.

How Does StraitsX USD Work?

Source: StraitsX

StraitsX USD (XUSD) is a fiat-backed stablecoin designed to maintain a 1:1 peg with the U.S. Dollar. Users can mint XUSD by depositing fiat U.S. Dollars into their StraitsX account,

At any time, users can redeem their XUSD for fiat USD, which upholds the 1:1 peg. This stability is supported by cash, cash equivalents, and short-term U.S. government securities, all held in regulated financial institutions. Its current list of Partner banks includes UOB, DBS Bank, and Standard Chartered.

StraitsX conducts regular audits and releases attestation reports to instill confidence and transparency to validate its reserves.

XSGD

Source: StraitsX

XSGD is a stablecoin pegged to the Singapore Dollar. Its reserve assets are held in cash, cash equivalents, and Singapore government or SG public entity-issued short-term bonds or notes. XSGD is available on the Ethereum, Polygon, Avalanche, Arbitrum, Hedera, and Zilliqa blockchains.

XSGD is an alternative to USD-based stablecoins, particularly for users in Singapore and Southeast Asia. Users can conduct transactions and manage digital assets in their local currency, leveraging blockchain technology while stimulating local economic activity.

XIDR

Source: StraitsX

XIDR is a stablecoin pegged to the Indonesian Rupiah that runs on the Ethereum, Polygon, and Zilliqa blockchains. Each XIDR is backed by reserve assets maintained at more than or equal to 100% of the value in circulation held and safeguarded in a regulated financial institution in Indonesia.

Transparency Reserve Report

StraitsX publishes monthly reserve reports where users can directly verify the stability of the stablecoin. KK Yap & Associates, an independent third-party accounting firm issue the reserve reports. This audit is conducted by “Singapore Standard on Assurance Engagements (SSAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information”, established by the Institute of Singapore Chartered Accountants (ISCA).

Here’s a summary statement of XUSD Reserves as of February 2025;

Source: StraitsX

Stablecoin Adoption in Southeast Asia

In Southeast Asia, stablecoins are being embraced to reduce transaction costs, expedite cross‐border payments, and hedge against local currency volatility. With high remittance fees and growing digital payment infrastructures, consumers and businesses are turning to stablecoins for everyday transactions.

Singapore

In Singapore, merchants are already processing over $1 billion in stablecoin payments, signaling a shift toward faster, cheaper, and more efficient digital payments. Local payment providers such as dtcpay are partnering with global infrastructure firms like Primer to enhance fiat-to-stablecoin conversion options. This collaboration expands payment methods by integrating credit/debit cards and digital wallets, making it easier for high-net-worth consumers in luxury and hospitality sectors to use stablecoins.

The Philippines

The Philippines is also developing regulatory pilot programs, and an operator has received approval from the Central Bank of the Philippines for a peso-backed stablecoin designed to facilitate remittances and everyday payments.

Indonesia

In Indonesia, innovative stablecoin projects, such as the Rupiah Token (IDRT) and StraitsX’s XIDR, are gaining traction alongside robust activity in decentralized finance (DeFi). This growth is driven by a young, tech-savvy population and increasing institutional interest in digital assets and blockchain solutions.

According to global adoption data, countries in Central and Southern Asia are now among the top in crypto adoption, driven in part by the surge in stablecoin transactions as regulators are adapting their frameworks to support digital assets while ensuring protection for end users.

Recent Developments

StraitsX Partners with Standard Chartered

Source: StraitsX

StraitsX has announced a key partnership with Standard Chartered, one of its trusted banking partners. Through this collaboration, Standard Chartered will provide robust cash management and custody services for the reserve assets backing StraitsX’s U.S. Dollar and Singapore Dollar stablecoins, XUSD and XSGD.

XSGD Now Available on Arbitrum

Source: StraitsX

StraitsX has officially launched its Singapore Dollar-backed stablecoin, XSGD, on Arbitrum, a leading Ethereum Layer 2 scaling solution. With Arbitrum, users can integrate XSGD into DeFi applications and facilitate faster and lower-cost transactions.

Risks Associated with Stablecoins

Using stablecoins comes with certain risks that users should be aware of. If you store or trade on an unregulated third-party platform, you risk losing your funds if that platform fails or gets compromised.

Legal clarity is another concern; while XUSD complies with Singaporean regulations, its status in other jurisdictions may be uncertain or even restricted. Always verify your local laws before engaging.

On the technical side, XUSD operates as an ERC-20 token, which depends on smart contracts that could potentially contain vulnerabilities or be exploited.

Finally, even though XUSD is fully backed by reserves, a sudden wave of redemptions could challenge liquidity, potentially delaying withdrawals or impacting price stability.

Conclusion

StraitsX USD (XUSD) represents a significant advancement in the stablecoin space, particularly for users in Southeast Asia. StraitsX addresses key challenges such as transparency, accountability, and cross-border complexities by providing a fully regulated alternative to the dominant U.S. Dollar-pegged stablecoins.

With its robust backing by U.S. Dollar reserves held within locally regulated financial institutions, XUSD offers users a reliable and secure way to engage in digital payments, trading, and remittances.

StraitsX and its offerings, including XUSD, are well-positioned to serve the growing needs of users seeking a trustworthy and local option in an increasingly globalized financial system. Through its commitment to compliance and innovation, StraitsX is contributing to the future of digital payments and enhancing the overall landscape of stablecoins in the region.