Xfers, a fin-tech company from Singapore, is set to launch a stablecoin called StraitsX by partnering with blockchain platform Zilliqa. The token will be pegged to the Singaporean Dollar, and it would be available in December 2019.
StraitsX: A New Stablecoin on Its Way
Xfers is a Singapore-based company focusing on online financial services like payment transactions. It provides a transparent and secure infrastructure for all sorts of businesses.
By partnering with the popular blockchain platform Zilliqa and launching StraitsX (XSGD), Xfers aims to contribute to a more open financial ecosystem within Southeast Asia. The product is set to launch in December this year, and it will be pegged to the Singaporean dollar.
Commenting on the matter was CEO, Tianwei Liu, who said:
“StraitsX demonstrates our willingness to adopt technology to propel our vision of building an open banking infrastructure for the region. With the transparency that blockchain provides, as well as the stablecoins being price-pegged to local fiat currencies, StraitsX aims to be a common ledger for digital assets, payments, fund transfers, and e-commerce.”
Additionally, the project should also receive the support of other major companies in the region, including Sparrow, WoWoo Exchange, Binance Singapore, and CoinHako. Xfers is also backed by Facebook’s co-founder, Eduardo Saverin, who is also on the Brazilian richest people list, which provides additional confidence in its intentions.
The Southeast Asia region has over 630 million people in it. The adoption of digital banking services has substantially increased over the last few years, but it still has a lot of room for growth. Reports have it that out of a total mobile connectivity rate of 133% (many people use more than one SIM card or a phone), only 27% have a bank account at the moment.
Zilliqa and Xfers Partnership
The partnership between the two companies was initially announced earlier this year to explore blockchain payments. According to the CEO of Xfers, the idea behind it was to “implement distributed ledger technology in our payments engine to increase transparency and to cost-efficiently scale up our transactions.”
Reportedly, their banking partners will be able to audit client funds using Xfers’ Wallet stored value facility on a more frequent basis. It would affect regulators as well, by allowing them to view the transaction statistics on the distributed ledger. Because Zilliqa’s blockchain-based platform will work in parallel with Xfers’ centralized infrastructure, this would enable it to handle a larger volume and cope with the potential growth.
Future of DApps
Zilliqa is designed to process thousands of transactions per second on its public blockchain. By dividing the leading network into several smaller ones that work together in a process called sharding, Zilliqa is capable of handling a more considerable amount of transactions per second. The platform allows the development of Decentralized Applications (DApps), which is a crucial component for the partnership Xfers.
Xfers, on the other hand, is in the online payment business with several options for their clients to benefit from. Established in 2015, their platform can be used for payments, distribution, and storage by different companies, as Liu explains:
“With Xfers’ easy platform integration, payments, disbursements, and wallet kits are offered to these businesses, making it easy for them to accept payments, store users’ funds and disburse funds to users’ bank account, dispensing with the need to build and maintain their own systems.”
It’s worth noting that Xfers has been recognized as a valued product by the Monetary Authority of Singapore Widely Accepted Stored Value Facility (MAS WA SVF). As of January 14th this year, Xfers Wallet has been approved by WA SVFs. This also means that all assets that are stored by the company are backed by bank holdings. Last year, the company received an award for assisting the Police in Singapore during a cybercrime investigation.
StraitsX would be the first product to result from the partnership between the blockchain platform Zilliqa and the Eduardo Saverin-backed Xfers.