The issuer of XSGD – the only Singapore dollar-backed stablecoin and one of the world’s major non-US dollar stablecoins – said its commitment to strict regulatory compliance and emphasis on cross-border payments could serve as a model for stablecoin issuers in Hong Kong.
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In an interview with the South China Morning Post on Thursday in Singapore, CEO Liu Tianwei said StraitsX was working with regulators and traditional financial institutions to support cross-border payments – an approach that may provide insights for future Hong Kong stablecoin issuers.
“It’s quite easy not to be legal,” Liu said on the sidelines of Token2049, the world’s largest cryptocurrency industry gathering where stablecoins were a hot topic. “If you want to get it done, you really need to do it in the right spectrum.”
Liu said that stablecoin issuers needed to establish “very strong banking relationships”, as tokens still required the backing of traditional banking systems and payment networks to reach clients and facilitate redemptions.
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What’s the hype about stablecoins?
What’s the hype about stablecoins?
His vision for stablecoins aligns with existing regulatory and financial frameworks, in contrast with Donald Trump Jnr, the US president’s eldest son and co-founder of World Liberty Financial, who promoted USD1 – the company’s US treasuries-backed stablecoin – as a potential way to “dollarise” the global economy.
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