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XSGD leads the rise of non-USD stablecoins, reshaping Asia’s crypto ecosystem with local currency stability and real-world utility
Author: Chirag Sharma
For years, the crypto world has revolved around one constant i.e. the U.S. dollar. Stablecoins pegged to it like USDT and USDC make up more than 90% of the $250 billion market. But 2025 marks a quiet rebellion. Around the world, new stablecoins are emerging that break free from dollar dominance. From Europe’s EURS to Australia’s AUDD, they are reshaping how liquidity flows across borders. And leading this shift in Asia is XSGD, Singapore’s homegrown stablecoin.
The demand for non-USD stablecoins has grown as countries look for local alternatives to navigate regulatory, political, and FX risks. In Southeast Asia, digital transactions exploded after the pandemic. Businesses started seeking faster, cheaper ways to send money across borders without converting into USD every time. That friction gave birth to an entirely new layer of stablecoins, tailored for regional ecosystems. Right now the market is highly dominated by USD pegged stablecoins
Source : coinglass
As banks and regulators tighten oversight of dollar-backed assets, projects like XSGD are gaining traction as compliant, localized solutions. Issued by StraitsX and regulated under Singapore’s Monetary Authority (MAS), XSGD represents the Singapore Dollar on-chain — stable, transparent, and deeply integrated with the region’s fintech networks. Its story is not just about another token; it’s about financial sovereignty, digital inclusion, and the end of a one-currency world.
The idea for XSGD took root in Singapore’s bustling fintech scene in 2019. StraitsX, the company behind it, saw that USD-backed stablecoins weren’t addressing Asia’s real financial needs. In a region where over 600 million people transact daily in local currencies, the need for a digital SGD was obvious. Businesses wanted a faster way to settle cross-border payments without expensive currency conversions or multi-day delays from SWIFT.
StraitsX became one of the first firms licensed under MAS’s Payment Services Act as a Major Payment Institution. That gave it the regulatory clarity needed to issue a fully compliant digital token. In November 2020, XSGD officially launched — fully backed 1:1 by SGD reserves held in top-tier banks like DBS and Standard Chartered. Every XSGD issued represented a real Singapore Dollar held in custody.
Built on Ethereum as an ERC-20 token, XSGD leveraged blockchain’s transparency and programmability to make payments instant and auditable. Unlike speculative tokens that promise yield, it focused purely on utility — remittances, payroll, and B2B transactions. Users could deposit SGD via the StraitsX platform and mint XSGD instantly. Redemptions were just as simple, maintaining complete parity at all times.
The early strategy was measured, not flashy. StraitsX focused on trust, compliance, and partnerships rather than hype. Integration with local exchanges like Independent Reserve and fintech apps allowed users to easily move between fiat and crypto. Regional exporters quickly adopted it to settle trades with Malaysia and Indonesia, cutting settlement times from days to minutes.
By 2021, XSGD’s circulating supply crossed 10 million tokens — modest compared to giants like USDT, but an important milestone for a new kind of stablecoin. Monthly attestations by Ernst & Young reinforced public trust, making XSGD one of the few tokens with real transparency from day one.
In the aftermath of the 2022 market chaos, when TerraUSD collapsed and billions evaporated overnight, XSGD’s conservative model stood out. It wasn’t an algorithmic stablecoin. It was backed by real fiat reserves and regulated oversight. That approach proved invaluable when the market demanded accountability.
Transparency became XSGD’s strongest selling point. StraitsX introduced real-time dashboards showing reserves, supply, and audit reports. The firm also expanded on-chain analytics to track circulation, offering a rare look into how a stablecoin operates. As regulators worldwide began scrutinizing stablecoins, XSGD became a blueprint for compliance — fully redeemable, institution-friendly, and open for verification.
The token’s design was simple but powerful. By anchoring directly to the SGD, it enabled individuals and enterprises to conduct transactions in their native currency, without foreign exchange exposure. Businesses using XSGD for trade settlements avoided the 5–7% currency conversion costs that typically eroded profit margins. For developers, it was a bridge between local finance and DeFi — usable in smart contracts, DEX liquidity pools, and NFT marketplaces.
Community adoption followed quickly. Fintech startups integrated XSGD for payroll automation. Cross-border freelancers used it to receive SGD payments instantly. Even traditional banks began testing it for internal settlements. In a region still catching up with real-time payment rails, XSGD brought programmable money into everyday use.
By 2025, XSGD had evolved from a regional utility to a global player. Its market cap exceeded $150 million, and daily transaction volumes surged across Asia. The year’s turning point came in May, when StraitsX announced a partnership with Ripple to launch XSGD on the XRP Ledger. That move slashed transaction fees to fractions of a cent and made instant cross-border remittances possible.
June saw another step forward — a deployment on Platon Network, a high-speed Layer-1 built for enterprise DeFi. This gave XSGD scalability beyond Ethereum’s congestion issues. Then in September, Coinbase listed XSGD globally, opening it up to millions of new users and boosting liquidity overnight. Within weeks, its supply jumped 40%.
Real-world usage expanded fast. Grab integrated XSGD into its super-app, allowing users to convert loyalty points into spendable XSGD. OKX Pay launched scan-to-pay services at local food courts and malls, letting merchants accept XSGD directly. For Singaporeans, it felt natural — a stablecoin that actually spent like the currency they used every day.
DeFi integrations multiplied too. On Aave and Uniswap, traders could now earn yield or provide liquidity in SGD terms. Institutional adoption followed: several regional banks began piloting SGD-based swaps using XSGD, reducing forex risk in intra-Asian trade corridors.
XSGD dominates the Asia-Pacific region, holding nearly 80% of non-USD stablecoin volume. Its growth highlights how regional tokens can challenge global hegemony by focusing on local needs, compliance, and usability.
Despite its rise, XSGD hasn’t been without turbulence. In March 2025, high Ethereum gas fees briefly caused a small depeg to 0.98 SGD, prompting a rush of redemptions. Though quickly restored, the event highlighted the fragility of cross-chain liquidity and the importance of infrastructure stability.
The multi-chain expansion also brought complexity. Each blockchain has unique standards and bridge mechanisms, and ensuring 1:1 parity across them is no small feat. Smart contract vulnerabilities, interoperability issues, and fragmented liquidity pools have tested StraitsX’s technical resilience.
Regulatory fragmentation is another obstacle. While MAS provides a clear framework, global jurisdictions differ widely. The EU’s MiCA regulations, Hong Kong’s VASP licensing, and U.S. compliance models each demand distinct reserve disclosures. StraitsX spends significant resources maintaining parity with all these evolving requirements.
To overcome liquidity and yield challenges, StraitsX launched XSGD Yield in early 2025 — a wrapped version offering 2–4% annual returns through short-term treasury and staking strategies. It attracted $50 million in deposits within months, proving that stable returns could coexist with stability.
The company also invested heavily in bridging technology. By integrating with Wormhole and Axelar, it achieved near-instant interoperability between Ethereum, XRP, and Platon chains, cutting conversion times from hours to minutes. This unified liquidity helped reduce volatility across platforms.
On the privacy front, XSGD adopted zero-knowledge proof systems for confidential transactions, ensuring data protection without compromising on regulatory visibility. Projects like Project Guardian, led by MAS, further positioned XSGD at the center of tokenized finance experiments. Through these pilots, XSGD is now tested alongside tokenized deposits from DBS Bank and other institutions, aligning stablecoins with future CBDC frameworks.
Each innovation reaffirmed XSGD’s role as not just a token but an infrastructure layer — bridging banks, fintechs, and decentralized systems under one transparent model.
The shift away from USD-centric dominance isn’t just an economic trend; it’s geopolitical. As BRICS nations push de-dollarization and regional trade agreements expand, the appetite for local currency stablecoins is growing fast.
In 2020, almost every major DeFi pair was denominated in USD. By 2025, pairs like SGD/USDT or AUDD/USDC have emerged on decentralized exchanges, showing how liquidity is diversifying. In Asia, cross-border remittances exceeding $3 trillion annually now see a growing share conducted using local-pegged stablecoins.
XSGD’s success has encouraged others to follow. Indonesia, Thailand, and South Korea are all exploring native stablecoins with similar compliance models. For many emerging economies, they represent a path toward digital resilience — keeping local currencies relevant in a blockchain-driven world.
Looking ahead to 2026 and beyond, XSGD is positioned to become the backbone of Southeast Asia’s digital finance landscape. As the global stablecoin market heads toward $1 trillion, analysts expect non-USD tokens to account for nearly half of it within three years.
StraitsX’s collaboration with MAS under Project Orchid could soon link XSGD directly with Singapore’s wholesale CBDC, enabling instant atomic settlements between banks and enterprises. That means a future where XSGD and government-backed digital currencies coexist seamlessly.
Programmable finance is the next frontier. XSGD could power smart contracts for supply chain escrows, corporate payroll, or automatic tax settlements — cutting dispute times and improving transparency across industries.
More importantly, it brings financial access to millions. A $100 remittance from Singapore to the Philippines that once cost $7 in fees can now move in seconds for a few cents. That’s the kind of transformation blockchain was meant to achieve.
As StraitsX’s founders say, “Most stablecoins will one day be non-USD.” In that world, XSGD won’t just represent the Singapore Dollar. It will represent a new phase of global finance — one where stability is local, access is universal, and blockchain bridges every currency together.
