SG Digest: Ant, Grab, StraitsX collaborate for PBM for cross-border payments; XREX gets MPI licence

SG Digest: Ant, Grab, StraitsX collaborate for PBM for cross-border payments; XREX gets MPI licence

Photo by Kirill Petropavlov on Unsplash.

Ant, Grab, and StraitsX have jointly collaborated to explore PBM for cross-border payments, while XREX said its Singapore-unit has received in-principle approval for a Major Payments Institution (MPI) licence.

Ant, Grab, StraitsX collaborate for PBM cross-border payments

Ant International, Grab, and StraitsX have announced their partnership to explore Purpose Bound Money (PBM) for cross-border payments.

PBM, introduced under the Monetary Authority of Singapore’s Project Orchid, refers to a digital currency innovation where the currency is designed to be used only for specific purposes or under certain conditions.

To date, several industry pilots have been launched as part of MAS’s Project Orchid initiative to trial the viability of PBM for similar commercial purposes, such as learning accounts, programmable rewards, and eCommerce escrow arrangements. Industry participants for these pilots also include Grab and Fazz.

According to the announcement, the partnership will allow GrabPay merchants to integrate with Ant International’s Alipay+ solutions with a focus on accepting payment from a large tourist customer base.

If successful, this advancement in cross-border payment capabilities will expand PBM use cases to launch in Singapore in 2024.

Blockchain finance firm XREX secures MAS major payment licence

Blockchain-enabled financial firm XREX announced that its Singapore unit has secured an in-principle approval for a Major Payments Institution (MPI) licence from the Monetary Authority of Singapore.

The MPI licence will allow XREX Singapore to expand XREX’s crypto-friendly escrow payment tool, called BitCheck, to support fiat, stablecoins, and cryptocurrencies, per the announcement.

“This is great for Singapore and great for our industry as a whole,” said XREX Singapore CEO Christopher Chye.

XREX, the world’s only digital asset player that secured approvals for virtual assets services from Singaporean and Taiwanese regulators, said its Singapore unit will serve as the Asia-Pacific headquarters for the group.

The MAS regulates digital payment token (DPT) service providers under the Payments Services Act 2019, which requires a DPTSP to operate under an MPI licence that specifically allows for the provision of DPT services.

Edited by: Joymitra Rai

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