OKX Singapore integrates GrabPay for stablecoin transactions

Seychelles-based cryptocurrency exchange OKX has introduced a stablecoin-powered payment service in Singapore, which will see its customers pay merchants through Grab’s payments platform using digital dollars.

According to a press statement viewed by Cryptopolitan on Tuesday, the service, dubbed OKX Pay, enables payments on GrabPay through the two largest US dollar-pegged stablecoins: Tether’s USDT and Circle’s USDC. 

The initiative builds on OKX SG’s presence in the southern tip of the Malay Peninsula, following its acquisition of a payment institution license from the Singaporean financial regulator, the Monetary Authority of Singapore (MAS), just over a year ago.

OKX Pay to use XSGD stablecoin service provider StraitsX

Under the new product, customers using USDT or USDC can scan GrabPay’s SGQR codes at selected outlets to settle transactions. Payments are routed through crypto infrastructure provider StraitsX, which converts the stablecoins into its Singapore dollar-backed token XSGD.

Once converted, the XSGD is then exchanged into Singapore dollars and transferred to the merchant. Every transaction is processed as a blockchain transfer under Singapore’s purpose-bound money (PBM) framework, which applies programmable logic for compliant and conditional remittances.

StraitsX, a regulated payments provider, will oversee compliance checks and real-time transaction validation under the PBM system. The company’s XSGD stablecoin already integrates with Alipay and Grab, connecting to wallets such as GCash, KakaoPay, and Touch ’N Go.

Gracie Lin, CEO of OKX SG, said the launch would bring digital payment tokens, or DPTs, into “everything-everyday” consumer use.

“OKX Pay addresses real needs for customers by expanding DPTs’ use beyond trading and investing to everyday payments, including a morning coffee, and even dining out with friends,” Lin’s statement read.

Through the new platform, Singapore could bite into a share of the global stablecoin market, which has now reached a total valuation of $297 billion, around 7% of the crypto market cap, according to DeFiLlama data.

“The launch of OKX Pay is a blueprint for how stablecoins will underpin global commerce in the years ahead,” said Tianwei Liu, StraitsX CEO and co-founder.

The partners said they plan to add more retail, beverage, and merchant options and expand the service to include more stablecoins and digital currencies, alongside USDT and USDC, in several regions within Singapore.

GrabPay integration could add to regional expansion roadmap

Grab is one of the most widely used payment platforms in Southeast Asia, but it had only started integrating digital assets into its ecosystem in March 2024. 

At the time, the service allowed Singapore users to top up their GrabPay wallets with Bitcoin, Ether, USDT, USDC, and XSGD following a deal with payments company Triple-A. That offering was extended to the Philippines in July this year, with the exception of XSGD.

According to anonymous sources speaking to The Straits Times, Grab has also partnered with OKX rival Coinbase to test a Web 3 Wallet that “holds digital assets in a pilot.” Moreover, on the same day as OKX’s launch, rival exchange Coinbase began trading XSGD. 

“We have been conducting pilots to explore the potential benefits of digital payment tokens, through collaborative efforts with industry partners including Amazon, Circle, StraitsX, Triple-A, and UOB,” a spokesperson for the company said when the news of the pilot program broke.

OKX President addresses regulatory hurdles

OKX may be looking to build its legitimacy in Singapore, but the exchange was fined €2.3 million (S$3.5 million) by the Dutch central bank in early September for operating without the required registration between July 2023 and August 2024. 

The fine was preceded by a $504 million penalty in February for processing more than US $1 trillion in transactions from US customers without proper licensing.

Speaking recently to Cryptopolitan, OKX president Hong Fang said stricter regulations like the MiCA rules had pushed the company to prioritize openness and traceability.

“We see it as validation of our own approach,” Fang said. “Robust standards and open verification are how we and our customers can feel confident as crypto keeps scaling up.”

She added that OKX was ready for Europe’s MiCA framework years in advance and had invested in developing compliance processes, audit systems, and infrastructure to meet its strict requirements.

“We saw the direction regulation was heading early and have spent years developing compliance processes, audit systems, and robust infrastructure. That means as reporting requirements step up, users and partners get consistent and reliable service, no matter how the rulebook changes,” the president remarked.

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