How Southeast Asia’s Stablecoin Payments Are Disappearing into the Crypto Card Boom!

by

Stablecoin payments go ‘invisible’ in Southeast Asia as crypto card business surgesFinance

What to know:

  • StraitsX, a Singapore-based company, has seen rapid growth in its stablecoin card program, with a 40x surge in transaction volume and an 83x increase in card issuance between 2024 and 2025.
  • The company’s infrastructure powers stablecoin-backed cards for partners like RedotPay, which processed over $2.95 billion in card volume in 2025, and enables seamless transactions in local currency.
  • StraitsX aims to make its stablecoin layer invisible, with plans to expand its presence in Southeast Asia and beyond, and to enable machine-to-machine micropayments on the Solana blockchain with its upcoming stablecoins, XSGD and XUSD.

When someone from Bangkok uses their mobile wallet to pay for something in Singapore, most people don’t think about the technology that makes it possible.

For StraitsX, a Singapore-based company that provides the technology powering stablecoins, this smooth and easy experience is precisely what they aim for.

StraitsX experienced a massive increase in card transaction volume – a 40-fold jump – between the last three months of 2024 and the same period in 2025, according to co-founder and CEO Tianwei Liu in a statement to CoinDesk.

The number of cards issued increased dramatically, growing by 83 times its original size. This suggests the program is one of the fastest-growing stablecoin card programs in Southeast Asia.

Although StratisX saw significant increases, it’s important to consider the background. Their key partnership with RedotPay only began operating in late 2024, meaning the low numbers from the last three months of that year don’t fully reflect typical activity.

Artemis Analytics reports that spending with crypto cards worldwide increased dramatically, from about $100 million each month in early 2023 to over $1.5 billion by late 2025. This represents an average annual growth of 106%, indicating that StraitsX is benefiting from a rapidly expanding market, not simply doing better than its competitors.

Spending with crypto cards surged in 2025, increasing by 420% from around $23 million in January to $120 million in December, according to data from Dune Analytics. Visa dominated this growth, processing over 90% of all onchain card transactions. By the end of 2025, Visa’s card spending linked to stablecoins reached an impressive $3.5 billion annualized, a 460% jump compared to the previous year.

As an analyst, I’ve been tracking the performance of StraitsX’s partners, and the numbers for RedotPay are really striking. In 2025, they processed over $2.95 billion in card transactions – that’s more than four times the combined volume of their thirteen biggest competitors. This clearly demonstrates that StraitsX’s infrastructure is supporting a leading force in the payments space.

The key question is whether the current rapid growth will continue as more people start using these cards and the initial excitement of spending with stablecoins fades. Competition will likely increase, focusing on things like card features, rewards programs, and fees.

StraitsX doesn’t create products customers see directly. Instead, it provides the behind-the-scenes technology that other companies use to build their own services. For example, it acts like a sponsor for card programs, allowing partners such as RedotPay and UPay to issue cards to their customers.

When customers use these payment methods – like tapping or scanning – stablecoins complete the purchase immediately, and the recipient gets their local currency right away.

According to Liu, users aren’t concerned with *how* a payment is made – whether with cryptocurrencies like stablecoins or traditional money – they just want the transaction to be successful.

This mindset guides the company’s approach: to make its stablecoin technology work seamlessly in the background. While StraitsX has already processed almost $30 billion in stablecoin transactions, its goal isn’t just about increasing that number. Liu envisions stablecoins functioning like fiber optic cables – readily available and essential, but largely unnoticed by the average user.

StraitsX plans to release its XSGD and XUSD stablecoins on the Solana blockchain by the end of March. This collaboration with the Solana Foundation will be the first time these tokens are directly available on a fast, efficient blockchain network.

The tokens will support the x402 standard, which allows for machine-to-machine micropayments.

According to Liu, as transaction fees become nearly nonexistent, it becomes possible to send tiny amounts of money back and forth very often. Payments then begin to resemble the way data flows online – constant, inexpensive, and seamlessly integrated into apps.

XSGD is the leading non-USD stablecoin in Southeast Asia, holding over 70% of the market. It’s designed to always be worth the same as one Singapore dollar and is regularly checked by auditors to ensure this. This stability became even more important earlier this year when the Singapore dollar reached its strongest level against the U.S. dollar in eleven years.

Looking beyond Singapore

StraitsX is expanding its reach beyond Singapore. As part of Project BLOOM, a new initiative by Singapore’s central bank, a payment link with Thailand is launching soon.

Thai tourists in Singapore will be able to easily pay businesses by scanning QR codes with KBank’s Q Wallet. The payment will automatically convert their Thai baht into Singapore dollars using digital currencies, making the process seamless and convenient. This utilizes a hidden digital payment system powered by stablecoins.

Liu explained that the company is using a well-established strategy. For example, adding GrabPay and Alipay+ didn’t require any changes for users. Despite this, they’ve seen a huge surge in activity – merchant transactions are up 400% and the number of unique customers making purchases from those merchants has increased six times over the last month.

Similar rollouts are planned in Japan, Taiwan and Hong Kong.

Like driving an electric car

Visa, a key partner of StraitsX, views the move towards stablecoin-backed cards as a logical step in the evolution of payments. According to Adeline Kim, Visa’s country manager for Singapore and Brunei, these cards won’t alter how customers pay.

These cards function just like regular credit or debit cards, offering the same protections against unauthorized charges and the ability to receive payments in traditional currency.

Kim explained it like this: driving an electric car is similar to driving a gasoline car on the same highway. The cars themselves are different, but everything else – the signs, tolls, and traffic laws – remains the same.

This growth is typical of what we’re seeing in the crypto card industry. Companies like Rain and Reap, which issue cards directly through Visa and handle their own financial processing, have grown quickly – Rain now processes over $3 billion and Reap over $6 billion annually.

As a crypto investor, I’m really excited about the potential for remittances. It’s crazy to think that sending just $200 overseas still costs almost 6.5% in fees, according to the World Bank. But with stablecoins, those fees could drop significantly, which would be a huge benefit for people sending money home to their families.

As I see it, stablecoin cards are poised to become much more than just a convenient way to spend. I anticipate we’ll soon see features like instant spending tracking, benefits for international purchases, and rewards programs that are personalized based on how people actually use them.

Liu believes true success is when technology fades into the background. He envisions the ideal stablecoin system as one that operates seamlessly, without users even noticing it’s there – transactions simply happen.

Read More

2026-03-29 21:58