Coinbase’s latest stablecoins respond to strong regional preference for local currencies over the US dollar.
Coinbase is adding Singapore dollar and Australian dollar-backed stablecoins to its platform as part of its mission to onboard one billion people into the crypto space by 2032.
Announced September 24, the exchange plans to list XSGD and AUDD globally, the first stablecoins from their respective markets to be available on Coinbase. Both are pegged 1:1 to local currencies and can be converted without fees, making them viable alternatives to the US dollar-dominated stablecoin ecosystem.
According to the Deutsche Bank Research Institute, 99% of today’s stablecoin market cap is tied to USD, largely backed by US Treasuries. With total stablecoin capitalisation projected to surpass $2trn by 2028, emerging markets and local economies risk growing dependent on the dollar if alternatives fail.
Coinbase’s move suggests a new strategy of offering users in Singapore and Australia the option to use digital tokens backed by their native currencies.
A new path for stablecoins
For regulators outside the US, the dominance of dollar stablecoins raises concerns about losing control over monetary policy, increased capital flows abroad and heavy dependence on American financial infrastructure, a challenge Europe already faces in payments.
Stablecoins tied to local currencies, like XSGD and AUDD, aim to fix this by letting people transact digitally while staying connected to their own economies.
An Ipsos survey, contracted by Coinbase, in Singapore and Australia backs this up. The survey showed more than 70% of crypto owners in both countries said they would rather use a local stablecoin than one pegged to the US dollar.
Coinbase is betting this demand for local tokens will drive faster adoption, especially in regions cautious about losing control to the US.
About the coins
XSGD is a Singapore dollar-backed stablecoin launched by StraitsX, a subsidiary of fintech group Fazz. It operates under the Monetary Authority of Singapore’s Single Currency Stablecoin (SCS) regulatory framework, which was introduced earlier this year.
Fully collateralised and redeemable 1:1 for SGD, XSGD has become one of the most widely used non-USD stablecoins in Asia, already integrated into local payments networks and DeFi protocols.
AUDD is an Australian dollar-backed stablecoin issued by Novatti Group, a publicly listed payments company regulated by the Australian Securities and Investments Commission (ASIC). Backed by fiat reserves and redeemable 1:1, AUDD is designed for both retail and institutional use cases, such as cross-border settlements and on-chain trading.
