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Both StraitsX and XTransfer secured licenses from the Monetary Authority of Singapore (MAS) that will significantly enhance their digital payment offerings.
StraitsX, a prominent player in the digital asset space, received a full suite of Major Payment Institution (MPI) licenses. This allows them to offer a wider range of services, including account issuance, domestic and cross-border money transfers, and digital payment token services. Notably, StraitsX also launched its own USD-backed stablecoin, XUSD, as part of its initiative to digitise currencies integral to global trade, the company announced on Wednesday.
XTransfer, on the other hand, received an in-principle approval for an MPI license, the company said on Tuesday. This provisional license signifies that XTransfer has successfully passed MAS' initial review but still needs to fulfill specific requirements within the next six months to obtain the full license. Once these requirements are met, XTransfer will be authorized to provide services like account issuance, domestic and cross-border money transfers, and e-money issuance.
Focus on Cross-Border Payments and Stablecoin Integration
These developments highlight Singapore's commitment to fostering innovation in the fintech sector, particularly in cross-border payments and stablecoin integration. Cross-border payments have traditionally been a cumbersome and expensive process, riddled with delays and high fees. Both StraitsX and XTransfer aim to address this by leveraging digital payment technologies and blockchain infrastructure.
StraitsX's MPI licenses, coupled with the launch of XUSD, position them as a major player in facilitating seamless cross-border transactions. XUSD, being pegged to the US dollar, offers a stable alternative to traditional currencies, potentially mitigating currency fluctuations during international transactions. Deployed on Ethereum in February 2024, XUSD is available as an ERC-20 token, with plans to expand to additional blockchain networks and DeFi protocols for greater interoperability and scalability.
"Beyond reinforcing our commitment to supporting a robust digital asset ecosystem, we aim to set high standards for a more inclusive and accessible financial industry, and this is only the beginning," Tianwei Liu, CEO and co-founder of StraitsX said in an announcement.
Founded in 2017, XTransfer, with its focus on SMEs, aims to simplify cross-border transactions and reduce costs for small and medium-sized enterprises engaged in global trade. The company plans to introduce comprehensive e-business wallet services in Singapore, and enhance trade facilitation between SMEs in Singapore and their global counterparts, particularly those in China.
"In the following period, our focus will be on the prompt deployment of our localized solutions to cater the needs of Singaporean SMEs. Subsequently, our endeavor will extend to Southeast Asia, utilizing technology to help SMEs efficiently participate in global trade and enhance their global competitiveness," Bill Deng, founder and CEO of XTransfer, said in the announcement.
XTransfer has 450,000 enterprise clients and is an industry leader in China, according to the firm.
