Singapore dollar stablecoins

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Singapore's dollar stablecoin market is dominated by StraitsX's XSGD, issued since 2020 by a company holding an MPI licence for e-money issuance and DPT services, and by Paxos Digital Singapore's USDG, a US dollar stablecoin issued from Singapore under the SCS framework's expectations and approved by MAS in principle in 2024.¹ The USDG case shows the strategic use of Singapore. A stablecoin pegged to a G10 currency may be issued under the SCS framework by a Singapore entity, giving the token a regulatory label recognised by Asian and European counterparties without the issuer having to be a bank.

Cross-border perspective

For a group that wants one stablecoin for both hubs, the practical answer in 2026 is a Singapore-issued SCS pegged to the US dollar or the Swiss franc, distributed in Switzerland through a Swiss-licensed exchange or custodian that onboards Swiss holders under the AMLA. The Singapore issuer is licensed by MAS. The Swiss distributor is a financial intermediary under Swiss law. The token itself is a deposit-like claim against a Singapore issuer and not against anyone in Switzerland, which avoids the Banking Act. The group must check that the Swiss distributor's activity does not amount to issuing the token in Switzerland, which would bring FINMA's 2019 and 2024 analysis back into play, and must check whether the proposed Swiss crypto-institution regime, once enacted, requires foreign stablecoins distributed in Switzerland to be approved.

Notes

MAS, Financial Institutions Directory entries for StraitsX Pte Ltd (formerly Xfers) and Paxos Digital Singapore Pte Ltd; Paxos media release of 1 November 2024 on the launch of Global Dollar (USDG) under MAS's framework. Part K, Chapter VI. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

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Dr Alexander Ressos, TEP

Of Counsel, KGP Legal LLC

I am Of Counsel with KGP Legal LLC in Singapore, where I work with a global client base of successful entrepreneurs and their families, independent asset managers, commodity trading houses and other commercial clients. I am a German and Swiss attorney-at-law, also admitted as a solicitor in England & Wales and in Hong Kong. I divide my time between Zug in Switzerland, Singapore and Hong Kong. Since 2017 I have advised international clients on more than 700 crypto and digital asset projects. I also have extensive experience in cross-border litigation and arbitration in Singapore, Hong Kong and other markets in South-East Asia and Greater China.

I operate across the key financial centres in South-East Asia, the Middle East and Switzerland, with a particular focus on asset protection, international tax and estate planning, as well as trusts, company administration and other fiduciary services. My philosophy is to serve as a trusted advisor working closely with my clients and to help them achieve their commercial objectives.

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SingaporeIQ is edited by Dr Alexander Ressos, an international business lawyer with more than 15 years of local experience in Singapore as a permanent resident, a Singapore registered foreign lawyer and managing partner of a Singapore foreign law practice. In addition to significant experience in cross-border investments and transactions, UHNWI private client work and sanctions/export controls, Dr Ressos has extensive experience in cross-border business and in crypto and digital-asset projects in Singapore, drawn from more than 700 projects since 2017.

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