Singapore's stablecoins payment hits $1B in Q2: report

The figure more than doubled from the first quarter, according to the 2024 Geography of Cryptocurrency Report released recently by U.S.-based crypto data analysis firm Chainalysis.

Stablecoins are cryptocurrencies whose value is tied to that of another currency. The Tether (USDT), for example, is a stablecoin that ties Bitcoin to the U.S. dollar, with USDT1 worth around US$1.

Businesses in Singapore use stablecoins because of "efficiency and low cost," Chainalysis researcher Eric Jardine said.

Singapore-based startup DTC Pay are among businesses that has enabled merchants to accept payments in cryptocurrency.

Ride-hailing and delivery giant Grab in March began accepting top-ups to its e-wallet via cryptocurrencies. Users are now able to make payments in Bitcoin, Ether, Singapore’s local currency stablecoin XSGD, Circle USD, and Tether.

"This trend of crypto payments is interesting in a market where retail fiat payment systems are already highly efficient, as it hints at the ubiquity of crypto holdings among the population," the report said.

Recent developments in regulatory and merchant adoption suggests that Singapore is positioning itself as a major hub for digital assets, which could eventually attract more global businesses and investors, it added.

Stablecoins, however remain a small sliver of payments flows in Singapore, Bloomberg reported.

Retail card payments in Singapore were worth SGD73.2 billion (US$56.2 billion) in the second half of last year.