Singapore-based stablecoin issuer StraitsX launched its stablecoin-powered payment system with Ant International and Grab on Nov 5. This follows a memorandum of understanding that was announced at the Singapore Fintech Festival 2023.
The payment system enables immediate Singapore dollar settlement payment for GrabPay merchants and Alipay+ payment partners receiving funds from inbound tourists.
This immediate settlement will take place through the Singapore dollar-denominated regulated stablecoin, which is facilitated through blockchain technology, including the Avalanche network to power backend payment acceptance flows with purpose bound money (PBM).
International users across 12 Alipay+ payment partners have been able to transact at participating GrabPay merchants in Singapore since September. These 12 partners include Alipay (Chinese mainland), Alipay HK (Hong Kong SAR), Kakao Pay, Naver Pay and Toss Pay (South Korea), Tinaba (Italy), MPay (Macao SAR), Touch ‘n Go eWallet and MyPB by Public Bank Berhad (Malaysia), Hipay (Mongolia), GCash (the Philippines) and TrueMoney (Thailand).
The use of PBM is also expected to keep payment processing costs consistent for GrabPay merchants in Singapore and international payment apps in the Alipay+ ecosystem.
Kell Jay Lim, Grab’s regional head of GrabFin, explains that currency exchange can often be a “pain point” for tourists. This collaboration with Ant and StraitsX helps to improve cash flow and reduce complexities associated with foreign currency transactions through the immediate Singapore dollar settlement.
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“With this collaboration, visitors to Singapore can now enjoy the convenience of using their preferred wallet when paying at any restaurant or retail merchant displaying the GrabPay QR,” says Lim.
Separately, Ant International is also working with StraitsX to enable the efficiency and interoperability of payments made through PBM via the Whale platform, which is Ant’s treasury management solution.
“Building a cross-border payment solution using blockchain technology to enable a seamless cross-border payment experience has been our mission since day one. Through this, we also hope to connect the diverse economies in Asia together to bring to reality a connected and inclusive digital economy,” says Tianwei Liu, deputy CEO and co-founder of StraitsX.
