Media: Singapore’s stablecoin regulation spurs interest in assets

After completion of work by the Monetary Authority of Singapore (MAS) on the regulatory framework for stablecoins, local companies began planning to issue assets. The Straits Times.

Payment firms StraitsX and Circle Internet Singapore, as well as DCS Card Center, said they are exploring the potential of issuing “stablecoins.”

StraitsX and Circle’s unit in the United States hold MAS licenses to provide digital payment-tokens services. DCS is regulated under the Banking Act.

StraitsX cofounder Lu Tianwei said the firm is considering obtaining regulated status for its Singapore-dollar-based stablecoin, XSGD. The company also issues XIDR, pegged to the Indonesian rupiah.

Regarding the potential issue of stablecoins pegged to other currencies, the cofounder noted the firm’s strong position as one of the leading issuers of non-dollar stablecoins.

A Circle spokesperson, which issues the second-largest stablecoin USDC, said the firm is “assessing opportunities within the current licensing rules.”

DCS previously launched the dollar-pegged DUS. The stablecoin is localised in Singapore. The company expects to register the token in the coming months as a MAS-regulated single-currency stablecoin.

“We will use DUS to create a payments ecosystem between Web2 and Web3, leveraging blockchain, privacy-preserving computation and other technologies to spur innovative development in the sector,” said DCS CEO Karen Low.

According to her, the company is discussing listing opportunities with crypto exchanges to broaden access to the payment token.

Analysts at Bernstein forecast growth in market capitalization of the stablecoins segment to $2.8 trillion over the next five years.