Singapore-based, fintech startup Xfers, with the vision to create a trusted, digital financial ecosystem in South-East Asia, has launched its first stablecoin pilot program dubbed StraitsX, powered by the blockchain platform Zilliqa. This initiative has been credited to the long-awaited need for a transparent and decentralized financial (Defi) ecosystem in the Southeast region.
Reportedly, this initiative by the mass-approved fintech startup has been well appreciated and supported by many organizations, including – CoinHako, Binance Singapore, WoWoo Exchange, Tokenize Xchange, Coinut, and Sparrow.
The first product of this partnership is the stablecoin, XSGD, which will be pegged to the Singapore Dollar (SGD) at 1:1.
Tianwei Liu, the co-founder and CEO of Xfers, commented,
Southeast Asia has been heterogeneous landscape and Xfers wants to empower individuals and businesses to access financial opportunities, regardless of their circumstances. StraitsX demonstrates our willingness to adopt technology to propel our vision of building an open banking infrastructure for the region. With the transparency, the blockchain provides, as well as the stablecoin being price-pegged to local fiat currencies, StraitsX aims to be the common ledger for digital assets, payments, fund transfer, and eCommerce.
The next-generation blockchain platform, Zilliqa, intends to resolve scalability issues faced by blockchains. Their platform is tailored to deal with thousands of transactions per second. It is directed towards facilitating secure data-driven decentralized apps, created to match the scaling requirements of financial algorithms and machine learning.
This collaboration will witness Xfers utilize Zilliqa’s smart contract functionalities to add “new innovations” to its platter of enterprise solutions, which incorporates support for disbursements, payments, regulatory compliance, along with a built-in digital wallet.
Utilizing the blockchain technology, the Monetary Authority of Singapore (MAS) expects to stimulate greater cost efficiency, security, and transparency.
Amrit Kumar, the president of Zilliqa added,
We are excited for Xfers as they continue to make inroads into Southeast Asia. Harnessing the features of our enterprise blockchain, Xfers will be able to process a significant increase in user transactions more securely. Spurred on by the promise of greater financial inclusion, efficiencies, and mobility, Zilliqa is proud to build on our existing partnership with Xfers to deliver on the shared promise of progress.
This project is a very practical approach and a well-suited operation for a province with a large informal economy, high transmittal rates, high mobile connectivity, and low admittance to banking services. Stablecoins are very flexible in this area. They allow seamless and simple storage and also make use of local currencies, making it a very affordable, indigenous, and cross-border payment option.