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What Is StraitsX USD (XUSD)?
Key Takeaways
StraitsX USD is a stablecoin pegged 1:1 to the US dollar. It’s designed to make payments, trading, and money transfers easier and more efficient.
XUSD operates under Singapore's financial regulations and is backed by real US dollars. It can provide a secure and stable way to trade and use digital assets.
StraitsX USD is available on Ethereum (ERC-20) and BNB Smart Chain (BEP-20), with plans to expand to more blockchain networks in the future.
Introduction
StraitsX USD (XUSD) is a stablecoin issued by StraitsX, a financial technology company focused on digital asset solutions. XUSD is pegged 1:1 to the US dollar and is designed to facilitate digital payments, asset settlements, and remittances.
What Is StraitsX USD?
StraitsX USD is a stablecoin backed by US dollar reserves held in regulated financial institutions. It’s issued by StraitsX USD Issuance Pte. Ltd., which is regulated by the Monetary Authority of Singapore (MAS). This ensures compliance with Singapore’s financial regulations, providing transparency and security for users.
XUSD is designed to maintain a stable market value. This makes it useful for businesses, traders, and individuals who want to use digital assets without exposure to high volatility.
What Is XUSD?
XUSD was created to improve the efficiency of financial transactions, especially in Southeast Asia. Some of its primary use cases include:
Digital asset settlements: Used by exchanges and traders to settle transactions without relying on traditional bank transfers.
Payments and micropayments: Enables businesses and individuals to make transactions with minimal fees.
Remittances: XUSD makes it cheaper and quicker to send money across different countries.
By leveraging blockchain technology, XUSD aims to offer a seamless and cost-effective solution for digital transactions.
Buying and selling XUSD
Similar to other stablecoins, XUSD works as a digital representation of US dollars on a blockchain network.
You can get XUSD through the StraitsX platform by depositing an equivalent amount of US dollars. Once the deposit is confirmed, an equal amount of XUSD is issued to your crypto wallet.
If you want to cash out, you can convert your XUSD back to US dollars. When you make a redemption request, the corresponding amount of XUSD tokens is removed from circulation, ensuring a constant 1:1 ratio between tokens and reserves.
Reserve management
StraitsX maintains a strict reserve management policy to ensure that every XUSD in circulation is backed by an equivalent amount of US dollar reserves. These reserves consist of:
Cash deposits
Cash equivalents
Short-term US government securities
Independent third-party audits are conducted regularly to verify that the reserves fully back the issued XUSD, ensuring transparency and trust.
Is XUSD on Ethereum?
Yes, XUSD is available as an ERC-20 token on the Ethereum blockchain, but it’s also available as a BEP-20 token on the BNB Smart Chain (BSC).
As an EVM-compatible token, XUSD can be used within various decentralized finance (DeFi) applications and services on Ethereum and BNB Chain.
In the future, StraitsX plans to expand XUSD to other blockchain networks to make it more accessible to more users and DeFi communities.
Benefits of Using XUSD
XUSD provides several benefits over traditional payment systems and other digital assets:
Price stability: Unlike cryptocurrencies that fluctuate in value, XUSD maintains a stable price, making it a reliable medium of exchange.
Faster transactions: Traditional bank transfers can take days to process, especially for international payments. XUSD transactions are completed in minutes.
Lower fees: Sending money through traditional payment providers often involves high fees. Blockchain transactions with XUSD typically have lower costs.
Compliance: StraitsX operates under Singapore’s financial regulations, ensuring that XUSD is managed in a legally compliant manner.
Transparency: Regular audits and blockchain transparency allow users to verify that XUSD is fully backed by reserves.
Things to Keep in Mind
While XUSD offers many advantages, users should be aware of potential risks:
Third-party platform: If you store or trade XUSD on an unregulated exchange or platform, you might lose your money if something goes wrong.
Local regulation: While XUSD is compliant with Singaporean regulations, its legal status in other countries may vary. Check your local regulations before taking risks.
Smart contract vulnerabilities: As an ERC-20 token, XUSD relies on smart contracts, which could be vulnerable to bugs or attacks.
Liquidity risks: Although reserves fully back XUSD, sudden surges in redemption requests could pose liquidity challenges.
StraitsX (XUSD) on Binance
Binance announced the listing of StraitsX USD (XUSD) on March 17, 2025. The listing was followed by a zero-fee promotion. During the promotion period, all eligible users can enjoy zero fees on XUSD/USDT spot and margin pairs.
For more information on the available promotions for spot and margin trading pairs, please check the Fees & Transactions Overview page.
Closing Thoughts
StraitsX USD (XUSD) is a stablecoin designed to make payments, trading, and money transfers easier and more efficient. Because it operates under Singapore's financial regulations and is backed by real US dollars, XUSD can provide a secure and stable way to trade and use digital assets.
XUSD is offering a bridge between traditional banking systems and decentralized financial services, but as a relatively new project, it remains to be seen if the project will manage to outgrow the more established stablecoins in the crypto space.
Further Reading
What Is a Stablecoin?
What Is Tether (USDT)?
What Is MakerDAO (DAI)?
Disclaimer: In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.
This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
StraitsX USD is a stablecoin pegged 1:1 to the US dollar. It’s designed to make payments, trading, and money transfers easier and more efficient.
XUSD operates under Singapore's financial regulations and is backed by real US dollars. It can provide a secure and stable way to trade and use digital assets.
StraitsX USD is available on Ethereum (ERC-20) and BNB Smart Chain (BEP-20), with plans to expand to more blockchain networks in the future.
Introduction
StraitsX USD (XUSD) is a stablecoin issued by StraitsX, a financial technology company focused on digital asset solutions. XUSD is pegged 1:1 to the US dollar and is designed to facilitate digital payments, asset settlements, and remittances.
What Is StraitsX USD?
StraitsX USD is a stablecoin backed by US dollar reserves held in regulated financial institutions. It’s issued by StraitsX USD Issuance Pte. Ltd., which is regulated by the Monetary Authority of Singapore (MAS). This ensures compliance with Singapore’s financial regulations, providing transparency and security for users.
XUSD is designed to maintain a stable market value. This makes it useful for businesses, traders, and individuals who want to use digital assets without exposure to high volatility.
What Is XUSD?
XUSD was created to improve the efficiency of financial transactions, especially in Southeast Asia. Some of its primary use cases include:
Digital asset settlements: Used by exchanges and traders to settle transactions without relying on traditional bank transfers.
Payments and micropayments: Enables businesses and individuals to make transactions with minimal fees.
Remittances: XUSD makes it cheaper and quicker to send money across different countries.
By leveraging blockchain technology, XUSD aims to offer a seamless and cost-effective solution for digital transactions.
Buying and selling XUSD
Similar to other stablecoins, XUSD works as a digital representation of US dollars on a blockchain network.
You can get XUSD through the StraitsX platform by depositing an equivalent amount of US dollars. Once the deposit is confirmed, an equal amount of XUSD is issued to your crypto wallet.
If you want to cash out, you can convert your XUSD back to US dollars. When you make a redemption request, the corresponding amount of XUSD tokens is removed from circulation, ensuring a constant 1:1 ratio between tokens and reserves.
Reserve management
StraitsX maintains a strict reserve management policy to ensure that every XUSD in circulation is backed by an equivalent amount of US dollar reserves. These reserves consist of:
Cash deposits
Cash equivalents
Short-term US government securities
Independent third-party audits are conducted regularly to verify that the reserves fully back the issued XUSD, ensuring transparency and trust.
Is XUSD on Ethereum?
Yes, XUSD is available as an ERC-20 token on the Ethereum blockchain, but it’s also available as a BEP-20 token on the BNB Smart Chain (BSC).
As an EVM-compatible token, XUSD can be used within various decentralized finance (DeFi) applications and services on Ethereum and BNB Chain.
In the future, StraitsX plans to expand XUSD to other blockchain networks to make it more accessible to more users and DeFi communities.
Benefits of Using XUSD
XUSD provides several benefits over traditional payment systems and other digital assets:
Price stability: Unlike cryptocurrencies that fluctuate in value, XUSD maintains a stable price, making it a reliable medium of exchange.
Faster transactions: Traditional bank transfers can take days to process, especially for international payments. XUSD transactions are completed in minutes.
Lower fees: Sending money through traditional payment providers often involves high fees. Blockchain transactions with XUSD typically have lower costs.
Compliance: StraitsX operates under Singapore’s financial regulations, ensuring that XUSD is managed in a legally compliant manner.
Transparency: Regular audits and blockchain transparency allow users to verify that XUSD is fully backed by reserves.
Things to Keep in Mind
While XUSD offers many advantages, users should be aware of potential risks:
Third-party platform: If you store or trade XUSD on an unregulated exchange or platform, you might lose your money if something goes wrong.
Local regulation: While XUSD is compliant with Singaporean regulations, its legal status in other countries may vary. Check your local regulations before taking risks.
Smart contract vulnerabilities: As an ERC-20 token, XUSD relies on smart contracts, which could be vulnerable to bugs or attacks.
Liquidity risks: Although reserves fully back XUSD, sudden surges in redemption requests could pose liquidity challenges.
StraitsX (XUSD) on Binance
Binance announced the listing of StraitsX USD (XUSD) on March 17, 2025. The listing was followed by a zero-fee promotion. During the promotion period, all eligible users can enjoy zero fees on XUSD/USDT spot and margin pairs.
For more information on the available promotions for spot and margin trading pairs, please check the Fees & Transactions Overview page.
Closing Thoughts
StraitsX USD (XUSD) is a stablecoin designed to make payments, trading, and money transfers easier and more efficient. Because it operates under Singapore's financial regulations and is backed by real US dollars, XUSD can provide a secure and stable way to trade and use digital assets.
XUSD is offering a bridge between traditional banking systems and decentralized financial services, but as a relatively new project, it remains to be seen if the project will manage to outgrow the more established stablecoins in the crypto space.
Further Reading
What Is a Stablecoin?
What Is Tether (USDT)?
What Is MakerDAO (DAI)?
Disclaimer: In compliance with MiCA requirements, unauthorized stablecoins are subject to certain restrictions for EEA users. For more information, please click here.
This article is for educational purposes only. This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial, legal or other professional advice, nor is it intended to recommend the purchase of any specific product or service. You should seek your own advice from appropriate professional advisors. Products mentioned in this article may not be available in your region. Where the article is contributed by a third party contributor, please note that those views expressed belong to the third party contributor, and do not necessarily reflect those of Binance Academy. Please read our full disclaimer for further details. Digital asset prices can be volatile. The value of your investment may go down or up and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance Academy is not liable for any losses you may incur. This material should not be construed as financial, legal or other professional advice. For more information, see our Terms of Use and Risk Warning.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
