Singapore stablecoin firm StraitsX has launched a cross border settlement solution in conjunction with Singapore GrabPay merchants and Alipay+, the offshore payments firm owned by Ant International. StraitsX is the issuer of the XSGD stablecoin and holds a major payment institution license in Singapore.
Alipay+ has collaborations with numerous local wallets, especially in Asian markets. Here the partnership is with GrabPay. Inbound tourists from nine countries can use their home payment apps when spending money in Singapore with select GrabPay merchants. The local merchants will receive settlement instantly in Singapore dollars using the XSGD stablecoin, which is purpose bound money (PBM).
PBM is a digital currency standard developed in Singapore governing programmability for vouchers or other logic associated with a stablecoin, tokenized deposit or CBDC.
According to StraitsX, PBM is “expected to keep payment processing costs consistent for GrabPay merchants in Singapore and international payment apps in the Alipay+ ecosystem.” We’re guessing the PBM smart contract includes some logic to ensure the consistent charges.
The Avalanche blockchain network has been used for the system.
“Our partnership gives global travelers even greater convenience when paying with their home payment app while in Singapore,” said Edward Yue of Ant International “Additionally, we are facilitating more efficient, secure, and lower-cost funds transfer, and look forward to playing our part to enhance consumer and merchant experiences through innovation.”
Last year StraitsX used purpose bound money with Grab at the Singapore Grand Prix.
