Standard Chartered Bank is expanding its presence in the stablecoin sector through a strategic partnership with StraitsX, a licensed stablecoin issuer in Singapore. This collaboration aims to enhance the reserve management of its US Dollar and Singapore Dollar stablecoins, known as XUSD and XSGD.
Through this partnership, Standard Chartered will serve as one of StraitsX’s trusted banking partners, thereby bolstering the security, transparency, and institutional-grade reliability of stablecoins as they become more integrated into mainstream finance. Under the terms of the agreement, the bank will offer cash management and custody services for the reserve assets that support StraitsX’s stablecoins, ensuring seamless and secure access to XUSD and XSGD for both businesses and individuals.
This move follows a previous arrangement made by Standard Chartered in December, where the bank provided similar services for Paxos stablecoins. Luke Boland, head of fintech in Asia at Standard Chartered Bank, commented, “This partnership further expands Standard Chartered’s wide-ranging involvement across the digital asset ecosystem, reinforcing our commitment to supporting responsible growth within the industry and recognizing digital assets as a significant and enduring aspect of the future of financial services. We look forward to collaborating closely with StraitsX and the evolving ecosystem to enhance key payment infrastructures that will make digital financial services more accessible and efficient.”
The announcement of this partnership comes on the heels of Standard Chartered revealing the establishment of a joint venture with Animoca Brands and HKT to create a Hong Kong dollar-backed stablecoin.