StraitsX, a digital asset payments infrastructure provider in Southeast Asia, has received Major Payment Institution (MPI) licenses from the Monetary Authority of Singapore (MAS).
The licenses were issued to StraitsX USD Issuance Pte. Ltd., StraitsX SGD Issuance Pte. Ltd., and StraitsX Payment Services Pte. Ltd.
Additionally, Xfers Pte. Ltd. obtained approval to expand its existing MPI license to include account issuance, domestic and cross-border money transfers, merchant acquisition, and digital payment token services.
These licenses enable StraitsX to provide various digital payment token services.
This development follows the earlier announcement in November 2023, where StraitsX, along with Paxos, received In-Principle Approvals (IPA) from MAS to issue stablecoins.
In addition to this, StraitsX has introduced XUSD, a fiat-pegged USD stablecoin, aimed at digitising currencies essential for global trade.
Launched on Ethereum in February 2024, XUSD is available as an ERC-20 token with plans to expand to other blockchain networks and DeFi protocols.
XUSD is designed for fast, global, and 24/7 payments and is pegged 1:1 to the US dollar.
It can be minted and redeemed on the StraitsX platform and is listed on exchanges like Uniswap and MEXC, with more to follow.
The XUSD stablecoin has been acknowledged by MAS as compliant with the forthcoming stablecoin regulatory framework.
To ensure transparency and security, reserve assets backing XUSD will be held at a level equal to at least 100% of the outstanding stablecoins, subject to independent audits.
StraitsX has partnered with major banks for cash management and custody of these reserve assets.
Tianwei Liu, CEO and Co-founder of StraitsX said,
“The launch of XUSD and our recent MPI licences represent major steps forward in simplifying and securing payment settlements.
These achievements demonstrate our commitment to building a safe and compliant digital asset ecosystem in Southeast Asia, and the approval from the Monetary Authority of Singapore further highlights our dedication to trust and compliance.”
Jason Tay, Head of Commercial, StraitsX, added,
“Stablecoins will play an increasingly pivotal role in the global financial landscape.
We believe that the addition of XUSD will enable a leap forward in speed, security, and transparency for payments and settlements within Southeast Asia and drive greater interoperability across platforms and networks.”
StraitsX, part of the Fazz ecosystem, provides payments infrastructure for digital assets in Southeast Asia.
The company offers personal and business account holders the ability to mint, redeem, and swap stablecoins, manage payments, and connect to digital asset platforms.
Featured image credit: Edited from Freepik
