XSGD (XSGD)
XSGD is a stablecoin that represents the Singapore Dollar (SGD) on the blockchain. It is part of the StraitsX stablecoin initiative developed by Xfers, a financial technology company focused on building payment solutions in Southeast Asia. XSGD is notable for being the world's first Travel Rule compliant stablecoin, aligning with regulatory standards and ensuring secure and transparent transactions.
The StraitsX initiative
The StraitsX initiative is a significant development in the Southeast Asian financial ecosystem. It aims to provide a robust framework for digital currency transactions, ensuring security, compliance, and efficiency. The initiative focuses on leveraging blockchain technology to facilitate seamless cross-border transactions and improve access to digital financial services in the region.
| Ticker | XSGD |
| Category | Stablecoins |
| Website | https://www.straitsx.com/sg/xsgd |
| @xfers | |
| Contract Addresses | |
|---|---|
| ethereum | 0x70...96 Copied! |
| hedera-hashgraph | 0x00...82Copied! |
| zilliqa | zi...whCopied! |
| polygon-pos | 0xdc...95Copied! |
| avalanche | 0xb2...6eCopied! |
Objectives of StraitsX
The primary objectives of the StraitsX initiative are to enhance financial inclusion, increase transaction speed, and reduce costs associated with traditional banking methods. By creating a stablecoin like XSGD, StraitsX seeks to provide a reliable digital representation of the Singapore Dollar that can be used for various applications, including remittances, payments, and decentralized finance (DeFi).
XSGD and the Travel Rule compliance
XSGD is the first stablecoin to comply with the Travel Rule, a requirement set by the Financial Action Task Force (FATF) to combat money laundering and terrorist financing. This compliance ensures that XSGD transactions include necessary information about the originator and beneficiary, promoting transparency and trust within the financial system.
Importance of compliance
Compliance with the Travel Rule is crucial for the widespread adoption of digital currencies. By adhering to these regulations, XSGD positions itself as a secure and reliable stablecoin that can be trusted by individuals, businesses, and financial institutions. This compliance also facilitates the integration of XSGD into existing financial systems, paving the way for broader acceptance and use.
How XSGD works
XSGD operates as a digital token on blockchain networks, providing a stable and secure means of transacting in Singapore Dollars. It is backed 1:1 by SGD held in reserve, ensuring that each XSGD token is fully collateralized and redeemable for traditional currency.
Issuance and redemption
XSGD tokens are issued and redeemed through the StraitsX platform. Users can convert their Singapore Dollars into XSGD tokens by depositing funds into a designated account, after which the equivalent amount of XSGD is minted and credited to the user's digital wallet. Similarly, users can redeem their XSGD tokens for SGD by initiating a withdrawal, which results in the burning of the tokens and the transfer of fiat currency to the user's bank account.
Use cases
XSGD can be used for a variety of purposes, including making digital payments, facilitating international remittances, and participating in DeFi platforms. Its stability and compliance make it an attractive option for individuals and businesses looking for a reliable digital currency for everyday transactions and financial activities.