Singaporean digital payment provider dtcpay recently made a groundbreaking announcement, revealing its plans to exclusively support stablecoins for its payment services by 2025. This strategic shift will see the firm dropping support for Bitcoin and Ethereum, two of the largest cryptocurrencies by market cap, starting next year.
In a recent post on X, dtcpay stated that it will begin transitioning to only accommodate stablecoins for all of its token payment services, with the change set to take effect in January 2025. This means that Bitcoin and Ethereum payments will no longer be supported by the Singaporean payment firm, while all other stablecoin and fiat currency services will continue to remain available.
The decision to focus solely on stablecoins is driven by dtcpay’s goal to provide customers with a more reliable, scalable, and secure payment experience. Stablecoins have gained popularity among banks and payment firms worldwide due to their value reliability, as they are typically pegged to fiat currencies, most commonly the U.S dollar.
As part of its transition, dtcpay plans to expand its support for stablecoins, adding First Digital USD (FDUSD) and Worldwide USD to its payment services alongside the already supported Tether (USDT) and USD Coin (USDC).
This move aligns with a broader trend of stablecoin adoption in Singapore, as highlighted by data from Chainalysis. The report reveals that stablecoin payments in Singapore surged to nearly $1 billion USD in the second quarter of 2024, doubling from the previous quarter’s figure of almost $500 million. The growing adoption of stablecoins for retail transactions is evident, with 75% of XSGD payments valued at $1 million or below, and nearly 25% of transfers valued below $10,000.
In November 2023, the Monetary Authority of Singapore introduced a regulatory framework aimed at enhancing the stability of single-currency stablecoins. The regulations apply to non-bank issuers of single-currency stablecoins linked to the Singapore dollar or other G10 currencies if their circulation exceeds S$5 million.
Overall, dtcpay’s decision to shift towards a stablecoin-only model reflects the increasing importance of stablecoins in the digital payment landscape and Singapore’s growing adoption of these digital assets. The move is set to provide customers with a more seamless and secure payment experience while aligning with regulatory developments in the region.