StraitsX to launch SGD stablecoin on Monad blockchain

StraitsX plans to issue its Singapore dollar and US dollar stablecoins on the Monad blockchain, making XSGD the first Singapore dollar-denominated stablecoin issued natively on the network.

The Singapore-based payments firm expects to launch XSGD and XUSD on Monad in early 2027, subject to technical, regulatory and compliance requirements. Monad is an Ethereum-compatible Layer 1 blockchain focused on financial applications.

The planned issuance would extend StraitsX's reach beyond its existing infrastructure into a newer blockchain ecosystem with a growing base of applications and financial services. For Monad, adding a Singapore dollar stablecoin would expand the currencies available to developers, businesses and institutions on the network.

XSGD and XUSD are issued by StraitsX entities that hold Major Payment Institution licences under Singapore's Payment Services Act. Both stablecoins have been recognised by the Monetary Authority of Singapore as substantively compliant with the forthcoming single-currency stablecoin framework.

StraitsX has processed nearly USD $30 billion in cumulative stablecoin transaction volume across its infrastructure to date. It aims to use the planned launch on Monad to support payment and settlement use cases, including card-related products and cross-border transaction flows.

Payments focus

StraitsX identified faster payments and card settlement in Singapore dollars as key goals for the integration. Any future products using XSGD or XUSD on Monad would require further assessment and would depend on regulatory, compliance and partner requirements.

That caution reflects the close scrutiny facing stablecoin issuers as regulators seek clearer rules for digital tokens linked to sovereign currencies. In Singapore, authorities have moved earlier than many jurisdictions to create a framework for single-currency stablecoins, giving locally regulated issuers a clearer path than rivals in less defined markets.

The Monad deployment would also take account of changing money-laundering and terrorism financing risks, with measures intended to mitigate those threats. That emphasis is likely to remain central to any expansion of stablecoins into mainstream payment products, where issuers must satisfy financial institutions, payment partners, regulators and end users.

"Bringing XSGD to Monad as the network's first SGD-denominated stablecoin gives us a way to put a Singapore dollar stablecoin to work in new card and payment products, without stepping outside the compliance standards we've built across the region. This builds on the regulated infrastructure and regional payment rails we have developed across Asia," said Tianwei Liu, Chief Executive Officer and Co-Founder of StraitsX.

Network expansion

Monad has positioned itself as a blockchain for financial activity while remaining connected to the wider Ethereum ecosystem. Compatibility with Ethereum-based tools and wallets matters for stablecoin issuers because it lowers barriers to integration with existing digital asset infrastructure, including liquidity venues and financial applications.

That interoperability appears to be part of Monad's appeal for StraitsX. Rather than launching into a closed environment, the company would place its tokens in a system designed to work with established wallets and applications already used across the broader Ethereum market.

Stablecoin issuers have increasingly sought to move beyond crypto trading into payments, remittances and settlement. A Singapore dollar token remains more niche than US dollar stablecoins, but it may have relevance in regional commerce and treasury operations where firms want digital settlement tied to a currency used in Asian financial flows.

XUSD, StraitsX's US dollar stablecoin, is also part of the planned launch. Together, the two tokens would give Monad users access to both Singapore dollar and US dollar-denominated instruments for on-chain transactions, potentially broadening the payment and settlement activity that can take place on the network.

"Payments, card settlement and consumer financial products require infrastructure that can process transactions quickly and inexpensively at high volumes," said Keone Hon, General Manager of the Monad Foundation. "Monad is designed for such activity while remaining compatible with the broader EVM ecosystem, allowing StraitsX to connect with established wallets, liquidity infrastructure and financial applications across an open, interoperable ecosystem, rather than building around a proprietary environment."