What is StraitsX USD (XUSD)?
Key Takeaways
StraitsX USD is a stablecoin pegged to the US dollar at a 1:1 ratio, designed to facilitate payments, trading, and money transfers more easily and efficiently.
The XUSD currency is subject to financial regulatory requirements in Singapore and is backed by real US dollars. It can provide a safe and stable way to trade and use digital assets.
StraitsX USD is available on the Ethereum network (ERC-20) and Binance 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 fintech company focused on digital asset solutions. The XUSD is pegged to the US dollar at a 1:1 ratio and is designed to facilitate digital payments, asset settlement, and transfers.
What is StraitsX USD?
StraitsX USD is a stablecoin backed by a reserve of US dollars held at regulated financial institutions. This currency is issued by StraitsX USD Issuance Pte. Ltd., which is regulated by the Monetary Authority of Singapore (MAS). This ensures compliance with financial regulatory requirements in Singapore, providing transparency and security for users.
XUSD is designed to maintain a stable market value, making it useful for businesses, traders, and individuals who wish 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, and some of its key use cases include:
Digital asset settlements: Used by trading platforms and traders to settle transactions without relying on traditional bank transfers.
Payments and micropayments: Allow businesses and individuals to make transactions for a simple fee.
Transfers: XUSD makes sending money across countries faster and less costly.
By leveraging blockchain technology, XUSD aims to provide a seamless and cost-effective solution for digital transactions.
Buy and Sell XUSD
Similar to other stablecoins, XUSD is a digital representation of the US dollar on the blockchain network.
You can obtain XUSD from the StraitsX platform by depositing an equivalent amount in US dollars, and once the deposit is confirmed, an equal amount of XUSD will be issued to your digital wallet.
If you wish to withdraw funds, you can convert your XUSD back to US dollars. When you submit a redemption request, the corresponding amount of XUSD tokens is removed from circulation, ensuring that the peg ratio between the tokens and the reserve remains at 1:1.
Reserve Management
StraitsX follows a strict reserve management policy to ensure that every XUSD in circulation is backed by an equal amount of US dollar reserves. This reserve consists of:
Cash Deposits
Cash Equivalents
Short-term US government bonds
Regular audits by independent third parties are conducted to verify that the reserve fully supports the issued XUSD coins, ensuring transparency and building trust.
Is XUSD available on the Ethereum network?
Yes, XUSD is available as ERC-20 tokens on the Ethereum blockchain, but it is also available as BEP-20 tokens on the Binance Smart Chain (BSC).
Since XUSD is compatible with the Ethereum Virtual Machine (EVM), it can be used in various decentralized finance applications and services on the Ethereum network and Binance Smart Chain.
In the future, StraitsX plans to expand the use of XUSD to other blockchain networks to make it available to more users and decentralized finance communities.
Advantages of Using XUSD
XUSD offers several advantages compared to traditional payment systems and other digital assets:
Price Stability: Unlike cryptocurrencies that experience ongoing value fluctuations, XUSD maintains a fixed price, making it a reliable means of trading.
Faster Transactions: Traditional bank transfers can take days to process, especially for international payments, but XUSD transactions are completed within minutes.
Lower fees: Sending money through traditional payment service providers often involves high fees, but blockchain transactions using XUSD typically cost less.
Compliance: StraitsX operates in accordance with financial regulatory requirements in Singapore, ensuring that XUSD is managed in a manner that complies with the law.
Transparency: Regular audits and blockchain transparency allow users to verify that XUSD is fully backed by reserves.
Notes to Keep in Mind
While XUSD offers many advantages, users should be aware of potential risks:
External platforms: If you store or trade XUSD on a trading platform or any platform not subject to regulatory oversight, you may lose your funds if things do not go well.
Local regulations: While XUSD is compliant with regulatory requirements in Singapore, its legal status may vary in other countries, so you should check local regulations to avoid risks.
Smart contract vulnerabilities: Since XUSD is an ERC-20 token, it relies on smart contracts, which may be susceptible to bugs or attacks.
Liquidity risks: Although there is a reserve fully backing XUSD, sudden spikes in redemption requests may pose liquidity challenges.
StraitsX (XUSD) on Binance
The Binance platform announced the listing of StraitsX USD (XUSD) on March 17, 2025. Following the listing announcement, a promotional offer was introduced that includes fee waivers, allowing all eligible users during the promotional period to enjoy fee waivers on the XUSD/USDT trading pair in the spot market and margin trading.
For more information about the promotions available for trading pairs in the spot market and margin trading, please refer to the fee and transaction overview page.
Closing Thoughts
StraitsX USD (XUSD) is a stablecoin designed to facilitate payments, trading, and financial transfers, making them more efficient and effective. Since it is subject to financial regulatory requirements in Singapore and backed by real US dollars, it can provide a safe and stable means of trading and using digital assets.
XUSD provides a bridge between traditional banking systems and decentralized financial services, but since it is still a relatively new project, we will have to wait and see if the project succeeds and outperforms already established stablecoins in the cryptocurrency space.
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Disclaimer: In compliance with the requirements of the Digital Assets Act (MiCA), unauthorized stablecoins are subject to specific restrictions for users in the European Economic Area. For more information, please click here.
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