XSGD, the only stablecoin pegged to the Singapore dollar, began trading on Coinbase on Oct 1, marking a milestone in its adoption. Issued by StraitsX since 2020, XSGD is fully backed 1:1 by reserves held at DBS and Standard Chartered.
Stablecoins — cryptocurrencies pegged to traditional currencies to limit volatility — now account for about 7% of the global crypto market, according to BlackRock. The broader stablecoin market is valued at around US$250 billion and could swell to US$2 trillion by 2028, Standard Chartered projects.
Singapore has positioned itself as a hub for digital assets, with the Monetary Authority of Singapore introducing a regulatory framework for stablecoin issuers in 2023. Lawmakers are now preparing legislative amendments and a consultation process to formalise the rules. The debut of XSGD on a major U.S. exchange underscores growing appetite for risk assets as investors eye dovish shifts in global monetary policy.
