Singapore based fintech startup Rate3, has announced the first Singapore dollar based stablecoin called Singapore Dollar Rate (SGDR).

Stablecoins continue to trend in the cryptocurrency industry as the extremely volatile nature of the market in recent times has led many to find solace in asset-backed currencies. For some, stablecoins provide a better unit of account, store of value and medium exchange than regular cryptocurrencies.

In light of this, Rate 3, has launched the first Singapore stablecoin guaranteeing users full redeemability for Singapore dollars on demand.

The Singapore Dollar Rate (SGDR) is currently in closed beta which makes it available for accredited or institutional investors only. The Singapore dollar is one the most stable FIAT currencies in the world which is backed by the country receiving the top AAA sovereign credit rating by Standard & Poor’s. Typically, countries with higher rating are better suited for investments which in extension means the Singapore dollar is highly stable.

Growing Demand For Stablecoins In Singapore

Cryptocurrency companies in Singapore continue to promote stablecoins as demand grows in the country. Houbi, the popular cryptocurrency exchange based in Singapore launched a new HUSD solution that aims to make it easier for crypto traders to make withdrawals and deposits using “multiple stablecoins.”

Currently, the exchange supports 4 stablecoins, Paxos Standard (PAX), True USD (TUSD), USD Coin (USDC), and Gemini Dollars (GUSD). HUSD solution, when implemented, will eliminate the need to choose between multiple stablecoins and save costs when switching between stablecoins.

Smaller exchange, Switcheo Exchange has also announced that Alchemint’s smart contract based SDUSD coin will debut on the Singapore crypto exchange and will be the first fiat-pegged pairing with NEO.

With a growing trend of stablecoin support in Singapore, Rate 3’s introduction of an indigenous stablecoin, the Singapore Dollar Rate (SGDR), may spark more growth and consumer interest in the new cryptocurrency asset class.