OKX Singapore launches stablecoin payments at GrabPay merchants
The scan-to-pay service, in collaboration with Grab and StraitsX, will allow the use of USDC and USDT on GrabPay
[SINGAPORE] OKX Singapore users can now use USDC and USDT stablecoins at GrabPay merchants by scanning SGQR codes, said the cryptocurrency exchange on Tuesday (Sep 30).
Stablecoins are a type of cryptocurrency that aim to limit price volatility by pegging their value to a currency, commodity or financial instrument. USDT and USDC are both pegged one-to-one to the US dollar, with the former the most widely used stablecoin in the world and the latter more likely to be used by institutions.
OKX users will now be able to scan Singapore’s national unified payment QR code (SGQR) to use the two stablecoins for daily transactions through the OKX Pay service. Merchant-partners will thus be able to accept stablecoin payments without handling digital payment tokens (DPTs) themselves.
Stablecoins currently make up 7 per cent of the global cryptocurrency market, according to BlackRock. OKX’s announcement also comes as Singapore has been angling to secure a piece of the US$250 billion stablecoin market through regulatory measures.
Every OKX Pay transaction will be executed as a blockchain transfer using the purpose bound money (PBM) framework, which applies programmable logic to ensure compliant and conditional settlement. Regulated payment service provider StraitsX will also enable compliance checks and real-time transaction validation through the PBM framework.
XSGD, the Singapore dollar-backed stablecoin issued by StraitsX, will serve as the underlying currency for these transactions. Trading of the XSGD stablecoin will also begin on OKX’s competitor exchange Coinbase on Wednesday (Oct 1), having originally been planned for Tuesday.
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The OKX Pay payment process will involve instant USDT or USDC to XSGD to Singapore dollar conversion, with settlement in Singapore dollar to Grab merchant-partners.
OKX SG chief executive officer Gracie Lin said: “OKX Pay addresses real needs for customers by expanding DPTs’ use beyond trading and investing to everyday payments.”
She took on the role at OKX in 2024, having been the managing director of Grab’s regional strategy and economics team.
In 2024, Grab added the ability for Singapore users to top up their GrabPay wallets with XSGD, Bitcoin, Ether, USDT and USDC after a tie-up with payment firm Triple-A. This, with the exception of XSGD, was expanded to the Philippines in July this year.
Earlier this month, OKX was fined 2.3 million euros (S$3.5 million) by the Dutch National Bank for operating in the Netherlands without the required registration from July 2023 to August 2024. This followed penalties of more than US$504 million in February for processing over US$1 trillion worth of US customer transactions without a licence.
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