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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.

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