Stablecoin transactions in Singapore have soared, nearing US$1 billion in the second quarter of 2024, according to a report by Chainalysis. This marks a significant rise in the use of these digital tokens, particularly for merchant transactions. Stablecoins, which are designed to maintain a steady value of US$1, offer businesses enhanced efficiency and lower transaction costs, making them an attractive payment option.

Despite their growing use, stablecoins still represent a relatively small fraction of the payment landscape in Singapore. In comparison, retail card payments amounted to US$56.2 billion in the second half of last year. However, stablecoins have gained traction due to their cost-effectiveness and quick settlement times, aligning with Singapore’s broader ambitions to establish itself as a digital-asset hub.

Stablecoins are primarily used in crypto trading, though they have faced scrutiny for their role in illicit activities. The Singaporean government is focusing on institutional applications of blockchain technology to modernize financial services, aiming to further reduce costs and streamline payment processes across the economy.

Source: Bloomberge