StraitsX USD (XUSD): Compliant & Fully Backed Stablecoin

In an era where trust and compliance matter as much as speed, StraitsX USD is designed to be a regulated, fully backed stablecoin built for the real world. Each XUSD token is pegged 1:1 with the US Dollar and redeemable on a one-to-one basis, backed by reserve assets whose attestation reports are published monthly.
As StraitsX USD holds licenses under Singapore’s regulatory framework, it aims to bridge traditional finance and DeFi by enabling fast, transparent, and compliant payments, trading, and remittances.

In this article, we’ll break down how XUSD works: its issuance and redemption mechanics, reserve management, listing and market performance, integrations in fintech & DeFi, and the risks users should watch out for. Whether you’re a crypto trader, a payments product developer, or a stablecoin enthusiast, this guide tells you everything you need to know about XUSD.

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What Is StraitsX XUSD?

StraitsX USD XUSD is a US dollar–pegged stablecoin issued by StraitsX, part of the Fazz group, designed to provide a stable, transparent, and globally usable digital currency for payments, settlements, and financial infrastructure. It aims to combine the stability of fiat with the speed, programmability, and borderless reach of digital assets.

XUSD is engineered to stay as close to $1.00 USD as possible, which is essential for its role as a stablecoin. On CoinGecko, XUSD is currently shown as exactly $1.00 for 1 XUSD.

Over short windows (24 h, 7 d), its price variation is minimal (often within a few basis points), reflecting that minting, burning, and arbitrage mechanisms are actively maintaining its peg. For example, CoinGecko’s display shows 0.0% change over 7 days, suggesting tight peg adherence.

Historically, XUSD’s greatest deviations from $1.00 are limited. Forbes lists its 1-year range as between $0.9264 and $1.07. These extremes tend to occur during periods of stress or when reserve flows lag demand, but the routine operation of redemption/minting is designed to pull it back to $1.

Thus, the peg is maintained via the constant interplay of:

  • Market arbitrage (if it trades slightly under or over $1, traders buy/sell to profit)
  • Redemption and minting (users redeem XUSD for USD or mint more when demand changes)
  • Reserve backing and audits that reinforce confidence

XUSD as StraitsX’s US Dollar–Pegged Stablecoin

  • Pegging to USD: XUSD is pegged 1:1 to the US Dollar. This means for every token of XUSD in circulation, there is an equivalent reserve in USD backing it.
  • Purpose: It’s meant to serve both consumers and businesses in cross-border payments, remittances, settlement rails, and digital asset platforms—where a stable USD-denominated token can reduce volatility and friction.

1:1 Backing and Redeemability: Minting & Burning

  • Full Reserve Backing: The reserves backing XUSD are held in assets equivalent to or fully covering the outstanding supply of XUSD. StraitsX USD publishes monthly reserve attestation reports to provide transparency.
  • Minting & Burning Process: Users can mint new XUSD by depositing USD (or the equivalent fiat), and conversely, redeem XUSD for USD, which then reduces the supply (burning). This mechanism helps maintain the peg and ensures XUSD remains fully backed.

Role in StraitsX’s Stablecoin Rails and Payments Infrastructure

  • Stablecoin rails: XUSD is part of a family of stablecoins by StraitsX USD (including XSGD, XIDR) that aim to create rails for digital payments. These rails allow instant swaps, transfers, and acceptance in both fiat and stablecoin forms.
  • Use cases: For businesses, these include cross-border settlements, merchant payments, and platforms integrating digital assets. For individuals, it means being able to send, receive, store, and redeem XUSD with minimal friction.
  • Interoperability & Networks: XUSD is launched on Ethereum (ERC-20) with plans to expand to more blockchains and integrate with DeFi and payment platforms.
Regulatory Compliance: Licenses, Oversight, and Auditing Standards
  • Regulatory Licensing in Singapore: StraitsX USD Issuance Pte. Ltd. is licensed as a Major Payment Institution (MPI) by the Monetary Authority of Singapore (MAS) to issue XUSD and to perform digital payment token services.
  • Acknowledgment & Framework Alignment: MAS has acknowledged XUSD’s compliance with the upcoming stablecoin regulatory framework in Singapore. StraitsX USD also secured in-principle approvals earlier for issuing stablecoins.
  • Auditing & Transparency:
    • Reserve attestation reports are published monthly.
    • Audits are done via independent auditors, consistent with standards such as those of ISCA (Institute of Singapore Chartered Accountants).
    • Reserves are held in segregated custodial accounts or trusted banking partners, increasing fund security.

StraitsX USD XUSD offers a stable, transparent, and regulated bridge between fiat and digital currency. Its 1:1 USD backing, redeemability, regulatory licensing by MAS, and adherence to rigorous auditing standards aim to position XUSD as a trustworthy component in modern payments infrastructure. For enterprises and individuals seeking stability in cross-border payments, remittances, or integrating with digital financial services, XUSD is designed to deliver.

Issuance, Redemption & Reserve Management of StraitsX XUSD

StraitsX USD XUSD is a US dollar–backed stablecoin built to provide users with a secure and transparent digital representation of the U.S. dollar. Its value is maintained through a carefully managed process of issuance, redemption, and reserve management, ensuring that every XUSD in circulation is always redeemable for USD at a 1:1 ratio.

Minting XUSD: How Users and Institutions Issue Tokens

To create new XUSD, users—whether individuals, merchants, or institutions—must deposit U.S. dollars or fiat equivalents into their StraitsX USD account. Once the funds are received and verified, StraitsX USD mints an equivalent amount of XUSD and transfers it to the user’s designated blockchain wallet.

  • Deposit Options: Minting can be done through supported payment rails such as bank transfers, wire payments, or approved fiat channels.
  • Blockchain Standards: XUSD is currently issued as an ERC-20 token on the Ethereum network, with compatibility for future multi-chain expansion.
  • Real-Time 1:1 Conversion: Each dollar deposited results in the creation of exactly one XUSD, ensuring the circulating supply remains fully backed.

This automated minting process allows businesses to access stable on-chain liquidity while maintaining confidence that every token represents an equivalent amount of U.S. dollars held in reserve.

Redeeming XUSD: The Burning Mechanism

Redemption is the reverse of issuance. Users can return their XUSD to StraitsX USD and receive U.S. dollars in exchange, effectively “burning” the tokens.

  • Conversion Steps: A holder initiates a redemption request, transfers XUSD back to StraitsX USD, and receives the corresponding USD in a linked bank account.
  • Supply Adjustment: Upon successful redemption, StraitsX USD permanently removes the redeemed XUSD from circulation, maintaining the 1:1 backing ratio and stabilizing market value.
  • Instant Peg Maintenance: This burning mechanism ensures that the token’s supply always reflects the exact amount of U.S. dollar reserves on hand.

Reserve Backing: Cash, Equivalents, and Short-Term Securities

To guarantee full collateralization, StraitsX USD holds reserves that match or exceed the total circulating XUSD. These reserves are maintained in cash, cash equivalents, and short-term securities such as high-quality government instruments and highly liquid deposits with regulated financial institutions.

  • Segregated Custody: Funds are kept in segregated accounts with trusted banking partners to minimize counterparty risk.
  • Liquidity Focus: The portfolio is structured for immediate redemption requests, with a preference for instruments that can be quickly converted to cash.

This diversified reserve strategy protects the stability of XUSD and reinforces confidence in its peg to the U.S. dollar.

Transparency Through Monthly Attestation Reports

StraitsX USD enhances trust by publishing monthly reserve attestation reports verified by independent auditors. These reports confirm that the value of reserves equals or exceeds the outstanding supply of XUSD. The attestation process follows recognized accounting standards, ensuring that users can independently verify the token’s backing at any time.

Through a regulated framework of minting, burning, and reserve management, StraitsX USD ensures that XUSD remains a reliable, fully collateralized digital representation of the U.S. dollar. Users and institutions benefit from transparent issuance, seamless redemption, and verifiable reserves—key features that make XUSD a trusted bridge between fiat and blockchain-based finance.

Network & Blockchain Integrations of StraitsX XUSD

StraitsX USD XUSD is designed to bridge traditional finance with the decentralized economy by offering a stable, US dollar–backed token that can move seamlessly across blockchain networks. Beyond simply providing price stability, XUSD enables participation in the rapidly expanding world of decentralized finance (DeFi) and Web3 applications, while remaining anchored to a robust regulatory framework.

Multi-Chain Support: Ethereum and BNB Smart Chain

XUSD is currently issued as:

  • ERC-20 Token on Ethereum – Ethereum remains one of the most widely used networks for DeFi, making ERC-20 XUSD compatible with a wide range of decentralized exchanges, lending protocols, and smart contracts.
  • BEP-20 Token on BNB Smart Chain (BSC) – BSC offers faster transaction speeds and lower fees, allowing users to transfer and utilize XUSD cost-effectively across a broad selection of DeFi services and trading platforms.

This dual-chain availability ensures flexibility for users and businesses, allowing them to choose a network that best fits their needs for speed, cost, and ecosystem access.

Roadmap for Network Expansion

StraitsX USD has signaled plans to continue expanding XUSD’s reach by integrating with additional blockchain networks. While specific chains have not been formally announced, future deployments may include high-throughput and low-cost ecosystems such as Polygon, Solana, or other emerging Layer-2 solutions. These integrations aim to reduce transaction costs, improve scalability, and enable XUSD to be used in a broader range of DeFi protocols and payment platforms.

The roadmap also points toward enhanced interoperability features, such as cross-chain bridges, to allow users to move XUSD across supported networks without relying on centralized exchanges.

XUSD in the DeFi Ecosystem

Thanks to its multi-chain presence and stable value, XUSD can serve as a critical building block for DeFi applications:

  • Liquidity Pools – Users can provide XUSD to decentralized exchanges (DEXs) such as Uniswap or PancakeSwap, earning trading fees while supporting market depth.
  • Lending and Borrowing – XUSD can be supplied to DeFi lending protocols to earn yield, or used as collateral to borrow other assets.
  • Swaps and Trading – Traders can swap XUSD with other cryptocurrencies to hedge against volatility or access different digital assets while staying in a USD-denominated stablecoin.

These interactions allow XUSD holders to earn passive income, manage risk, and participate in on-chain finance without leaving the stable value of the U.S. dollar.

Platform Functionalities: StraitsX Wallet and Fiat/Crypto Rails

StraitsX USD complements XUSD with an integrated platform that simplifies access and management:

  • StraitsX USD Wallet – A user-friendly interface to mint, redeem, send, and receive XUSD across supported blockchains.
  • Swap Services – Built-in swaps let users move between XUSD and other StraitsX USD stablecoins like XSGD, or trade with major cryptocurrencies.
  • Over-the-Counter (OTC) Services – Institutions can execute large trades efficiently with dedicated OTC support.
  • Fiat On- and Off-Ramps – Seamless bank transfers and local payment methods make it easy to move between fiat and digital assets.

By supporting both Ethereum and BNB Smart Chain, and planning for future network expansion, StraitsX USD positions XUSD as a versatile, chain-agnostic stablecoin for both retail and institutional users. Whether used for liquidity provision, lending, or cross-border payments, XUSD’s multi-chain integrations and robust platform tools make it a reliable gateway between fiat currency and the decentralized financial world.

Use Cases & Ecosystem Applications of StraitsX XUSD

StraitsX USD XUSD is more than a price-stable digital token—it is an essential building block for modern financial transactions. Backed 1:1 with U.S. dollars and issued under Singapore’s regulatory framework, XUSD enables seamless movement of value across borders, between merchants, and within decentralized finance (DeFi) ecosystems. Its design empowers individuals, businesses, and institutions to transact with confidence while enjoying the speed and flexibility of blockchain technology.

Cross-Border Payments and Remittances

One of XUSD’s core use cases is cross-border money transfers. Sending funds across countries often involves high fees, lengthy processing times, and exposure to exchange rate volatility. With XUSD:

  • Instant Transfers – Users can send U.S. dollar–denominated value globally in minutes, bypassing traditional correspondent banking networks.
  • Lower Costs – Transactions on supported blockchains (Ethereum or BNB Smart Chain) are faster and can be significantly cheaper than conventional wire services.
  • Stable Value – Because XUSD is pegged 1:1 to the U.S. dollar, both senders and recipients avoid the price swings common in volatile cryptocurrencies.

This makes XUSD particularly attractive for migrant workers, online businesses, and financial platforms looking to streamline remittance flows.

Merchant Settlement and Fiat Bridges

XUSD also serves as a merchant settlement and fiat bridge for fintechs, e-commerce platforms, and financial institutions. Businesses can accept XUSD as payment and either hold it on-chain or redeem it for U.S. dollars, simplifying settlement with international partners.

  • Instant Finality – Merchants receive cleared payments within minutes, reducing counterparty risk.
  • Multi-Currency Support – Through StraitsX’s infrastructure, XUSD can be swapped with other StraitsX USD stablecoins (like XSGD) or major cryptocurrencies, making it a flexible tool for global trade.
  • Institutional Access – Banks, payment processors, and fintech companies can leverage XUSD to build USD-denominated services without holding volatile crypto assets.

On-Chain DeFi Opportunities

XUSD integrates naturally with DeFi protocols, where stablecoins form the backbone of lending, borrowing, and trading platforms.

  • Swaps – Traders can exchange XUSD for other tokens on decentralized exchanges (DEXs) such as Uniswap or PancakeSwap.
  • Liquidity Provision – Holders can supply XUSD to liquidity pools and earn a share of trading fees.
  • Yield & Lending – DeFi lending markets allow users to deposit XUSD to earn interest or use it as collateral to borrow other assets.

These use cases provide holders with ways to generate returns while retaining the stability of a U.S. dollar–pegged asset.

Integration in StraitsX Payment Rails

The StraitsX ecosystem offers multiple ways to access and deploy XUSD:

  • StraitsX Wallet – Mint, redeem, send, and receive XUSD directly through a secure web or mobile interface.
  • QR Payments & Cards – Supported merchants can accept XUSD for everyday transactions, including QR-code payments.
  • OTC Services – Institutions can execute large trades or conversions through StraitsX’s over-the-counter desk.
  • Fiat On/Off Ramps – Users can move between bank accounts and blockchain networks effortlessly.

From cross-border remittances to merchant settlements and DeFi participation, XUSD delivers a versatile, regulated, and stable medium of exchange. By combining blockchain efficiency with StraitsX’s licensed payment infrastructure, XUSD creates a seamless bridge between fiat and crypto economies, empowering users to transact globally with confidence and speed.

StraitsX USD XUSD continues to strengthen its position as a trusted, U.S. dollar–backed stablecoin across Asia and beyond. Built for both retail users and institutions, XUSD maintains a tight 1:1 peg to the U.S. dollar while expanding exchange listings, market liquidity, and trading volumes. Analyzing price stability, on-chain supply metrics, and recent milestones provides a clear picture of XUSD’s current market performance and future potential.

XUSD’s market performance reflects the strength of its underlying fundamentals: a consistently stable price, fully collateralized reserves, and expanding exchange presence. With ongoing ecosystem integrations and the possibility of high-profile exchange listings, XUSD is well-positioned to grow its role as a trusted digital dollar for payments, trading, and decentralized finance (DeFi) applications.

XUSD by StraitsX USD is a fully backed, regulated USD stablecoin aiming to unify traditional finance and crypto with compliance, transparency, and efficiency. It offers a 1:1 peg to the US dollar, reserve backing with public attestations, multi-chain support (ERC-20, BEP-20), and integration into real-world payment rails. While it holds strong promise for global payments, remittances, and DeFi utility, users must stay aware of risks around peg maintenance, security, and evolving regulations.
Ready to explore? Visit straitsx.com/xusd, try minting or redeeming, examine the reserve reports, and see how XUSD fits into your portfolio or fintech strategy.