XFers launched a regulated digital Singaporean dollar on Ethereum and Zilliqa named the XSGD stablecoin which is touted as the first Travel Rule compliant payment solution as we are reading more in the latest cryptocurrency news.
People with bank accounts in Singapore can immediately convert SGD to XSDG. The XSGD stablecoin will be regulated and backed 1:1 with Singapore Dollars. Xfers announced the release of the new stablecoin and the company received an e-money issuance license by the Monetary Authority of Singapore thus allowing the company to mint the unlimited amounts of the coin. XFers launched the regulated digital Singapore dollar thanks to the e-money license which enabled the company to mint unlimited amounts of the stablecoin as long as the fiat currency is locked in MAS-approved Bank accounts. The relationship and oversight will ensure that all XSGD tokens are fully backed by Singapore dollars.
The stablecoin will adhere to all rules in the PSN01 notice that was issued by MAS in response to the financial action task force guidelines of 2019 on virtual asset service providers. The rules are designed to curtail the money laundering or terrorist financing attempts and will provide a framework for custodial crypto operators such as the wallets and exchanges. Head of StraitsX at Xfers Aymeric Sally said:
“We have seen the adoption of stablecoins rise quickly over the years, however, 98% of the market is dominated by USD-denominated stablecoins – we believe that now is the time for stablecoins pegged to other national currencies such as the Singapore Dollar to emerge.”
The stablecoin will be launched on both Zilliqa and Ethereum and will be instantly available on exchanges and wallets in the StraitsX ecosystem which contain some notable companies like Crypto.com and Ledger. Users can track issuances and redemptions and volume related to the stablecoin of the official website.
As reported previously, the Monetary Authority of Singapore is officially ready to deploy its multi-currency blockchain payments project for commercial use. The Singaporean authorities announced that their blockchain payments platform (Project Ubin) is complete and finally ready for commercial launch. The Monetary Authority of Singapore (MAS) first undertook the Project Ubin in 2017 and had plans to first develop a digitized Singapore dollar (SGD). However, the next steps involved exploring blockchain and distributed ledger technology as well as building a system for the clearing and settlement of payments and securities using digital SGD.
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