Grab and StraitsX have confirmed an agreement to explore the development of Web3-enabled payments infrastructure across Asia, the companies announced on Tuesday.
summary
- Grab and StraitsX have signed a memorandum of understanding to develop a Web3-enabled payments infrastructure in Southeast Asia, integrating digital asset wallets and stablecoin payments for consumer transactions via the Grab app.
- The initiative aims to enable GrabPay merchants to accept stablecoin payments in multiple markets, and could allow users to hold and trade stablecoins such as XSGD and XUSD, pending regulatory approval.
- The partnership aims to reduce cross-border payment fees, increase transaction transparency, and enhance interoperability with the existing Web2 payments rail.
The proposed partnership aims to integrate digital asset wallets and stablecoin payments into consumer transactions through two components. One is a Web3-connected wallet that will be integrated within the Grab app, and the other is a stablecoin-based payments network designed to support compliant clearing and payments across participating markets.
Under the MoU, Singapore-based StraitsX will support the technology development of the Web3 wallet within the Grab platform, with payment processing, clearing and settlement capabilities via smart contracts. The initiative will enable GrabPay merchants in major markets in Asia to accept stablecoin payments from domestic and international consumers through Web3 wallets.
Subject to regulatory approval, Grab users may be able to hold and trade stablecoins, including XSGD and XUSD issued by StraitsX, designed for enterprise-grade cross-border payments, and may be able to exchange between fiat currencies and other stablecoins within the app, according to the announcement.
“By combining Grab’s scale with StraitsX’s established stablecoin infrastructure, proven track record in market expansion, and network of partners across Asia, we are able to deliver a faster, cheaper, more comprehensive and regulated financial network,” said Tianwei Liu, co-founder and CEO of StraitsX.
Liu expects the partnership will foster the growth of Southeast Asia’s digital economy “on the interoperable payment infrastructure of the future.”
Southeast Asia payment system
The companies said the Web3-enabled payments layer aims to address inefficiencies in Southeast Asia’s payment systems, where transactions remain fragmented and merchant card payment fees for credit cards are higher than on real-time payment rails. The proposed network provides real-time foreign exchange transparent cross-border payments.
This integration is designed to provide merchants with a Web3-compatible wallet connected to their existing Web2 payment rails and Web3 payments. The partnership will address anti-money laundering and anti-terrorist financing requirements and reduce risks from the merger, according to the announcement.
“At Grab, we believe Web3 technology has the potential to improve cross-border retail payments while providing users with a familiar experience. We look forward to working with StraitsX and leveraging their capabilities and expertise to solve these problems for consumers and merchants,” Ker Jay Lim, head of Grab Financial, said in a prepared statement.
The companies said they plan to build a common foundation for payments and digital asset connectivity and drive a shared roadmap to expand adoption and interoperability across key markets in Asia.
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