StraitsX USD or XUSD is a stablecoin pegged to the US dollar at a 1:1 ratio, meaning each XUSD is worth a real dollar held in reserves under the supervision of the Monetary Authority of Singapore (MAS). The company behind it is called StraitsX USD Issuance Pte. Ltd and adheres to Singapore's financial regulations, which gives users confidence. This currency is currently available as ERC‑20 tokens on the Ethereum network and as BEP‑20 on the BNB network, with plans to expand to other blockchain networks soon.
Its uses include settling transactions on trading platforms without relying on traditional banks, transferring money quickly and at low fees, as well as paying for goods and services. The issuance process is simple: you convert real dollars to StraitsX, and they issue you the same amount in XUSD in your digital wallet. When you want to redeem your dollars, you withdraw the XUSD, and they are removed from circulation.
Regarding the reserves, they consist of cash and short-term U.S. government bonds and are audited periodically by external parties to ensure that every XUSD token is fully backed by the dollar. The advantages are that transactions are faster and cheaper than traditional banks, and prices are stable, but you need to be aware of the risks of smart contracts and the liquidity of external platforms, and regulations can vary from country to country. XUSD aims to be a bridge between the banking system and decentralized services, and we will see if it can compete with other stablecoins or not.
