We are very excited to share that the first Singapore Dollar pegged stablecoin, StraitsX Singapore Dollar (XSGD), is now listed on Coinhako.
What is XSGD?
XSGD is a blockchain-powered stablecoin that has gained significant attention in the cryptocurrency space.
Developed by StraitsX and Fazz, XSGD is one of the first stablecoins to be pegged to the Singapore Dollar using blockchain technology, offering stability and convenience for users.
As a stablecoin, XSGD aims to address the volatility commonly associated with cryptocurrencies. By pegging its value to the SGD on a one-to-one basis, it ensures that each XSGD token represents an equivalent amount of SGD held in reserve. The use of blockchain technology further enhances the transparency and security of XSGD transactions.
Built on top of reputable blockchain networks like Ethereum or Zilliqa, every transaction made with XSGD is recorded on an immutable ledger, providing users with a high level of confidence in the integrity of their transactions. Users can also enjoy fast transactions without traditional banking intermediaries, reducing time-consuming processes often associated with fiat currencies.
XSGD is available on multiple chains such Ethereum, Hedera, Polygon and Ziliqa blockchains, and you can access the ERC20 version of the crypto on Coinhako.
How does XSGD work?
To ensure the stability of XSGD’s price, the StraitsX team employs the following measures:
- Singapore Dollars is held in reserve accounts at licensed financial institutions to ensure there are sufficient funds to redeem tokens whenever necessary.
- Regular audits are conducted to verify the reserves and provide users with assurance that their XSGD holdings have a solid backing, and can be redeemed for the equivalent fiat Singapore dollar amount at any time.
Users can acquire XSGD by purchasing them through authorized platforms or by converting their existing Singapore Dollars into tokens. Conversely, when users wish to redeem their XSGD holdings for fiat Singapore dollars, they can also do so by submitting a redemption request through the authorized channels – a fairly straightforward process.
Why does XSGD stand out from other stablecoins?
Where stablecoins are concerned, XSGD stands out as a unique option due to its peg to the Singapore dollar, while others are pegged to the U.S dollar. This improves XSGD’s compatibility within the Singaporean ecosystem, allowing it to seamlessly integrate into various financial systems and platforms within Singapore. This would in turn make it easier for businesses and individuals in Singapore to transact with a digital currency that closely mirrors their native fiat currency.
What is a stablecoin?
Stablecoins are a popular form of cryptocurrency that aims to address the volatility issues associated with traditional cryptocurrencies like Bitcoin and Ethereum. They are designed to maintain a stable value, usually pegged to a fiat currency such as the US dollar or the euro.
The stability and security are backed by their value with reserves of fiat currency or other assets. This backing is often held in a transparent and audited manner, ensuring that each unit of stablecoin is backed by an equivalent amount of the underlying asset.
Stablecoins can be used for everyday transactions or as a store of value that allows users to protect their wealth from inflation or economic instability. They play an essential role in bridging the gap between traditional finance and decentralized technologies. They represent stability, transparency, and increased accessibility in the world of digital currencies.
What can you do with XSGD on Coinhako?
XSGD will be available for users to trade across all swap pairs on Coinhako.
To gain access to any of these trading pairs, you can either:
1. Fund your SGD wallet on Coinhako instantly with PayNow (or any other supported payment methods)
2. Purchase XSGD instantly with Visa / Mastercard
Risk Warning on Digital Payment Token Services
Hako Technology Pte Ltd ("Coinhako") is licensed to provide digital payment token services under the Payment Services Act 2019 (No. 2 of 2019).
The Monetary Authority of Singapore ("MAS") requires us to provide this risk warning to you as a customer of a digital payment token ("DPT") service provider.
Before you pay your DPT service provider any money or DPT, you should be aware of the following.
- Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
- You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
- You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
- You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
Visit: Coinhako.com/risk-disclosure for more information.