As a seasoned analyst with over two decades of experience in the financial industry, I find the recent collaboration between StraitsX and Bitstamp to list XSGD, Singapore’s first stablecoin, quite intriguing. Having witnessed the evolution of digital assets from their infancy, I can appreciate the potential that this partnership holds for both parties involved.
As a researcher, I’m excited to share that StraitsX, a renowned payment institution licensed by the Monetary Authority of Singapore (MAS), has announced the listing of the nation’s first stablecoin – XSGD – on Bitstamp. This move aims to boost XSGD’s liquidity and global appeal for payments. The XSGD is pegged 1:1 to the value of the Singapore dollar (SGD) and is backed by national reserve assets, ensuring its stability even during market turbulence. At the moment, it has a 24h volatility of 0.3%, a market cap of $28.74 M, and a 24h volume of $16.02 M. The current trading price is approximately $0.77.
StraitsX Partners Bitstamp
This digital asset debuted in the crypto market back in 2020 and can now be found across multiple blockchain networks such as Ethereum, Polygon, Zilliqa, and more recently, Hedera. Hedera is a decentralized platform that operates on a proof-of-stake (POS) protocol and the hashgraph consensus mechanism.
Regardless of being backed by numerous blockchain networks, XSGD has faced challenges in achieving widespread adoption globally, especially when compared to established players such as USDT and USDC that currently command large market shares.
In response to this, StraitsX has teamed up with Bitstamp to make XSGD more accessible to users not only in Asia but globally. This partnership aims to strategically place the stablecoin in a prime position for worldwide acceptance.
Reduced Transaction Costs
Based on the company’s statement, XSGD possesses the key attributes required to challenge established players such as USDT and USDC, given its exceptional transparency and stability benefits for users across global markets. The company is optimistic that these distinctive features will appeal to users seeking a dependable option in the stablecoin market.
Users on Bitstamp can anticipate several advantages such as lower fees during transactions, quicker payment processing times, and the opportunity to secure competitive exchange rates when making international transactions.
Jason Tay, Head of Commercial at StraitsX, stated that listing XSGD on Bitstamp represents a significant step in our quest to make StraitsX’s stablecoins known worldwide. This move enhances liquidity and accessibility, resulting in faster, clearer, more streamlined, and cost-effective on-chain cross-border transactions.
Unlocking New Opportunities
Tay thinks that this growth is likely to revolutionize the way people and companies handle international financial exchanges, creating fresh possibilities for financial accessibility and worldwide commerce.
Keep in mind that people residing in specific regions such as the U.S. and European nations won’t be able to use XSGD on Bitstamp, as it is subject to regulatory limitations in those areas.
In the Asian Pacific Region (APAC), the digital asset can only be traded by individuals, as this exchange has a specialized branch specifically designed to serve users within that region.
At present, Singapore’s initial stablecoin is being listed on Bitstamp, coinciding with an uptick in interest within the stablecoin sector. Numerous financial institutions, such as banks, are currently investigating the potential of launching their own stablecoins for international money transfers.
Previously, it was disclosed that BBVA, Spain’s second-biggest banking institution, intends to debut in the stablecoin sector by launching its unique digital coin.
Similar businesses like Ripple and BitGo are progressing with their stablecoin projects. At this moment, Ripple is conducting testing on its digital asset.
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2024-10-08 15:39