Straitsx

StraitsX operates as a digital payment infrastructure provider, positioning itself as a foundational layer for stablecoin-powered commerce and settlement. The company was founded in 2020 by Tianwei Liu and Victor Liew Jia Hao. The founding was inspired by CEO Tianwei Liu's personal experiences with the fragmented payment infrastructure in Southeast Asia after returning from Silicon Valley. A software engineer with a background from Amazon and a startup acquired by Google, Liu identified the need for more seamless, developer-friendly payment solutions in the region. This led to the creation of its predecessor, Xfers, in 2015, which evolved to focus on stablecoin technology with the establishment of StraitsX.

Regulated by the Monetary Authority of Singapore (MAS) as a Major Payment Institution, StraitsX provides a compliant environment for its operations. This regulatory standing is a cornerstone of its business, enabling it to secure partnerships and build trust. The firm's core business revolves around the issuance of fiat-collateralized stablecoins, primarily the Singapore Dollar-pegged XSGD and the US Dollar-pegged XUSD. XSGD, launched in October 2020, stands as one of the largest non-USD denominated stablecoins globally. These stablecoins are fully backed by reserves held in cash deposits and government bonds with partner banks like DBS and Standard Chartered.

StraitsX generates revenue through merchant acquisition and foreign exchange services, rather than accruing interest on the stablecoin reserves. The business model is focused on acquiring merchants and increasing transaction liquidity to lower fees over time. The company offers a suite of products including API-based solutions for fiat and stablecoin on- and off-ramps, a 'StraitsX Swap' feature for fee-free currency trades between stablecoins, and over-the-counter (OTC) services for large volume trades. It serves a diverse client base, from individuals and fintechs to global institutions and Web3 platforms, enabling them to integrate stablecoins for use cases like cross-border payments, decentralized finance (DeFi), and real-time settlement. By merging the communication and settlement layers into a single blockchain transaction, StraitsX eliminates the delays common in traditional finance.

Significant milestones for the company include receiving In-Principle Approval (IPA) from MAS under its stablecoin regulatory framework, processing over US$10 billion in on-chain transactions, and expanding its stablecoins' availability across multiple blockchain networks like Ethereum, Polygon, Hedera, and Avalanche. Key partnerships with entities such as Grab, Ant International's Alipay+, Coinbase, and Visa have been instrumental in demonstrating real-world applications. For example, a collaboration allows tourists to use their native payment apps (like Alipay+) to pay GrabPay merchants in Singapore, with XSGD facilitating the real-time cross-border settlement behind the scenes. Another partnership with UPay and Visa enables users to spend stablecoins at millions of Visa-accepting merchants globally through card programs.

Keywords: digital payment infrastructure, stablecoin issuer, XSGD, XUSD, Monetary Authority of Singapore (MAS), fiat-backed stablecoins, cross-border payments, blockchain settlement, payment interoperability, digital asset payments, fintech solutions, API payment solutions, Singapore Dollar stablecoin, Tianwei Liu, FAZZ Financial Group, on-chain settlement, merchant acquisition, digital currency, real-time payments, financial inclusion, regulated digital assets, DeFi integration, purpose-bound money, Xfers