To this end, the total value in crypto received by merchant services in Singapore has also grown, reaching almost US$1 billion ($1.3 billion) in 2Q2024. This reflects a significant increase compared to the past two years.
There has also been steady local adoption of XSGD, which is issued by Major Payment Institution (MPI) licence-holder Straits X.
More than 75% of the XSGD value transferred during the time period studied by Chainalysis took place in sizes of US$1 million or below, with almost 25% of transfers under US$10,000. This suggests a strong base of retail activity.
In contrast, other stablecoins pegged to the US dollar are mainly transferred in large sizes of above US$1 million — suggesting institutional activity.
See also: The Trump family is going all-in on crypto projects, from Bitcoin mining to stablecoins
Aside from the increasing adoption of crypto among Singapore, the country’s recent regulatory clarity may be bolstering confidence in stablecoins, the report notes.
In August 2023, the Monetary Authority of Singapore (MAS) finalised its stablecoin regulatory framework. This includes new requirements for stablecoin issuers, as well as detailing segregation and custody procedures for customer assets.
Furthermore, the MAS implemented crypto custody and licencing requirements in April. The combination of regulatory clarity and merchant adoption suggests that Singapore is positioning itself as a major hub for digital assets, Chainalysis adds.
