Payments in Singapore with stablecoins rise to almost US$1 billion

Payments in Singapore using stablecoins reached a record high of almost US$1 billion in the second quarter, led by transactions at merchant outlets, according to a report from Chainalysis.

Businesses use the tokens because of “efficiency and low cost,” Chainalysis Cybercrimes Research Lead Eric Jardine said. Stablecoin payments in Singapore amounted to about US$161 million in the second half of 2023, the study showed.

Stablecoins typically seek to hold a steady value of US$1, backed by reserves of cash and bonds. They are mostly used for crypto trading, and some have been faulted for their popularity with the criminal underworld. Stablecoins remain a small sliver of payments flows. For example, retail card payments in Singapore were worth US$56.2 billion in the second half of last year.

The city state is trying to develop a digital-asset hub focused on institutional uses of blockchain technology that make financial payments quicker and cheaper. BLOOMBERG