Adoption of crypto as a payment method for a variety of services is on the rise, according to Chainalysis' Global Crypto Adoption Index 2024.
In its report, Chainalysis highlights that Singapore based start-up dtcpay has allowed merchants to accept payments in crypto. Additionally, ride-hailing platform Grab has also enabled payments in Bitcoin, Ether, Circle USD, Tether, as well as Singapore’s local currency stablecoin, XSGD.
To this end, the total value in crypto received by merchant services in Singapore has also grown, reaching almost US$1 billion ($1.3 billion) in 2Q2024. This reflects a significant increase compared to the past two years.
There has also been steady local adoption of XSGD, which is issued by Major Payment Institution (MPI) licence-holder Straits X.
More than 75% of the XSGD value transferred during the time period studied by Chainalysis took place in sizes of US$1 million or below, with almost 25% of transfers under US$10,000. This suggests a strong base of retail activity.
In contrast, other stablecoins pegged to the US dollar are mainly transferred in large sizes of above US$1 million — suggesting institutional activity.
See also: Bitcoin resumes advance, rekindles US$100,000 milestone optimism
Aside from the increasing adoption of crypto among Singapore, the country’s recent regulatory clarity may be bolstering confidence in stablecoins, the report notes.
In August 2023, the Monetary Authority of Singapore (MAS) finalised its stablecoin regulatory framework. This includes new requirements for stablecoin issuers, as well as detailing segregation and custody procedures for customer assets.
Furthermore, the MAS implemented crypto custody and licencing requirements in April. The combination of regulatory clarity and merchant adoption suggests that Singapore is positioning itself as a major hub for digital assets, Chainalysis adds.
