October 06, 2025
By Anjali Kochhar
At a time when regulators across Asia are wrestling with how to incorporate stablecoins into mainstream finance, one Singaporean issuer is stepping up as a guide. StraitsX, the company behind XSGD (Singapore-dollar backed stablecoin), has publicly offered a blueprint for Hong Kong’s nascent stablecoin sector, emphasizing compliance, banking partnerships, and cross border integration.
In a recent interview at Token2049 in Singapore, Liu Tianwei, CEO of StraitsX, outlined the principles that have guided his company’s success. He urged Hong Kong counterparts to prioritize regulatory alignment from the start. “It’s quite easy not to be legal,” Liu remarked, driving home the point that ethical shortcuts or ambiguity can sabotage credibility and sustainability.
One of his key recommendations is that stablecoin issuers must build strong relationships with banks and traditional financial institutions. Liu noted that even digital tokens require conventional backing for operations like redemptions, liquidity management, and reach. Without banking support, stablecoins risk being orphaned from the payment rails users depend on.
Another pillar of his guidance is the focus on cross border payments. StraitsX has been working closely with regulators and legacy finance networks to ensure that its stablecoin can move seamlessly across jurisdictions. Liu suggested that Hong Kong issuers can learn from that model, especially as the city positions itself as a global financial hub.
StraitsX’s emphasis on integrating stablecoins into existing regulatory and financial frameworks is also a deliberate signal. Rather than pushing for radical change, Liu envisions stablecoins working within established systems, reducing friction with regulators and building institutional trust. This contrasts with more aggressive approaches elsewhere that aim to disrupt central banking models.
For Hong Kong, where regulators are actively exploring digital asset regulation but have yet to crystallize clear rules, the StraitsX example offers a practical roadmap. If local operators adopt strong compliance regimes, partner with banks early, and design for regional mobility, they may avoid pitfalls experienced in more volatile crypto markets.
Nevertheless, challenges remain. Hong Kong issuers must navigate regional regulatory fragmentation, varying bank appetites for crypto exposure, and legal uncertainty in token classification. But if they follow the playbook laid out by StraitsX, they stand a better chance of achieving utility, adoption, and legitimacy.
In short, as Asia’s stablecoin landscape evolves, StraitsX is betting that prudence, partnership, and compliance will be the pillars that separate enduring projects from short lived ventures.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
