Data Insights: Current State of Southeast Asia's Local Stablecoins in Q2 2025
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Data Insights: Current State of Southeast Asia's Local Stablecoins in Q2 2025
Local stablecoins are crucial.
Navigating Web3 tides with focused insightsAuthor: rafi
Translation: TechFlow
Key Takeaways
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Dominance of SGD-pegged stablecoins: XSGD is the only issuer of Singapore dollar-pegged stablecoins, and with partnerships with Grab and Alibaba, XSGD dominates Southeast Asia's local stablecoin market.
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Market metrics: Operating across over 8 EVM chains, with 8 issuers and support for 5 local currencies. In Q2 2025, decentralized exchange (DEX) trading volume reached $136 million (dominated by Avalanche chain and Singapore dollars), down 66% from $404 million in Q1.
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Regulatory progress: The Monetary Authority of Singapore (MAS) is advancing its framework for SGD-pegged and G10-currency-pegged SCS stablecoins; Indonesia and Malaysia have launched regulatory sandbox trials.
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Cross-border trade: In 2023, only 22% of Southeast Asian trade occurred internally within the region. Overreliance on the U.S. dollar leads to expensive delays and fees. Local stablecoins can streamline settlement through instant, low-cost transfers, further accelerated by the ASEAN Business Advisory Council’s (ASEAN BAC) regional QR code payment initiative.
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Financial inclusion: Over 260 million people in Southeast Asia remain unbanked or underbanked. Non-dollar stablecoins, once integrated into super-app wallets like GoPay or MoMo, can expand access to affordable financial services, supporting remittances, micropayments, and daily digital transactions.
Southeast Asia (SEA) has a combined GDP of $3.8 trillion, a population of 671 million, ranking as the world's fifth-largest economy, competing with other economies and driven by 440 million internet users fueling digital transformation.
Against this backdrop of economic dynamism, non-dollar stablecoins—and digital currencies pegged to regional or basket currencies—offer transformative tools for Southeast Asia’s financial ecosystem. By reducing reliance on the U.S. dollar, these stablecoins can enhance cross-border trade efficiency, stabilize intra-regional transactions, and promote financial inclusion across diverse economies.
This article explores why non-dollar stablecoins are critical for Southeast Asian financial institutions and policymakers aiming to shape a resilient, integrated economic future.
Transactions
Source: https://dune.com/queries/5728202/9297229
Since January 2020, adoption of non-dollar stablecoins in Southeast Asia has surged rapidly—from just 2 projects initially to 8 by 2025. This growth is driven by rising transaction volumes and diversified blockchain platform usage.
In Q2 2025, non-dollar stablecoin transactions in Southeast Asia reached 258,000, with those pegged to the Singapore Dollar (SGD), particularly XSGD, capturing 70.1% of the market share. Stablecoins pegged to the Indonesian Rupiah (IDR) (IDRT and IDRX) followed with 20.3%. This reflects strong regional economic activity and regulatory support, underscoring their pivotal role in Southeast Asia's digital economy.
Source: https://dune.com/embeds/5728202/9297229
Over the past four years since 2020, cumulative non-dollar stablecoin transactions in Southeast Asia have exceeded one million, driven by widespread adoption and strong exposure to EVM chains that continue to grow market share quarter-over-quarter. In Q2 2025, Avalanche led with 39.4% market share (101,000 transactions), followed by Polygon (83,000 transactions, 32.5%) and Binance Smart Chain (28,000 transactions, 10.9%). Avalanche’s rapid rise is largely attributed to the XSGD project, currently the only stablecoin operating on the Avalanche chain, which has gained significant traction since launch. XSGD is a 1:1 SGD-pegged stablecoin issued by StraitsX, a major payment institution licensed by the Monetary Authority of Singapore (MAS).
Active Addresses
Source: https://dune.com/queries/5728541/9297706
Since Q2 2025, non-dollar stablecoins in Southeast Asia have seen broad adoption, with a significant increase in the number of active (transacting) addresses—surpassing 10,000, including 4,558 returning addresses and 5,743 new addresses—indicating steady user growth and enhanced engagement.
Source: https://dune.com/queries/5728383/9297467
Unlike transaction counts, which reflect overall activity levels, active (transacting) addresses measure user engagement and adoption. In Q2 2025, among non-dollar stablecoins in Southeast Asia, Polygon led with a 39.2% share, followed by Binance Smart Chain (BSC) at 23.1%, and Avalanche at 10.1%.
Note: In the "grouped by chain" view, addresses conducting stablecoin transactions across multiple chains (e.g., Polygon and Base) are counted separately on each chain, resulting in totals higher than the "ungrouped" view (deduplicated data).
DEX Trading Volume
Source: https://dune.com/queries/5748360/9327460
In Q2 2025, DEX trading volume declined 66% from $404 million in Q1 to $136 million. Avalanche led with 51% ($69 million), followed by Polygon with 33% ($45 million), and Ethereum with 9% ($12 million). This decline highlights the trend toward scalability, where Avalanche and Polygon dominate.
Source: https://dune.com/queries/5748398/9327527
As previously noted, in Q2 2025, DEX trading volume in local currency terms reached $132 million, dominated by SGD-pegged stablecoins leading the Southeast Asian non-dollar stablecoin market. Assets denominated in Singapore Dollars accounted for 93.1% ($127 million), followed by Philippine Peso (PHP) at 3.9% ($5 million), and Indonesian Rupiah (IDR) at 2.7% ($3.6 million). This underscores the dominance of the Singapore Dollar in regional DEX activity.
Southeast Asian Stablecoins: Opportunities and Challenges
Opportunities
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Enhancing Cross-Border Trade Efficiency
In 2023, intra-Southeast Asian trade accounted for only 22% of the region’s total trade, but transactions typically rely on USD-based correspondent banking, leading to high fees and delays up to two days. Stablecoins pegged to Southeast Asian currencies offer a more efficient alternative, enabling near-instant settlement at lower costs. Building on this, the ASEAN Business Advisory Council (BAC) has adopted cross-border QR code payments settled in local currencies. Collaboration between BAC and Southeast Asian stablecoin issuers could further reduce remittance fees and improve exchange rates.
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Promoting Financial Inclusion
An estimated 260 million people in Southeast Asia are unbanked or underbanked. Non-dollar stablecoins can bridge this financial services gap. Mobile-based stablecoin wallets integrated with platforms such as GoPay in Indonesia or MoMo in Vietnam can enable low-cost remittances and micropayments.
Challenges
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Regulatory Uncertainty and Fragmentation
The diverse regulatory landscape across Southeast Asia creates uncertainty for stablecoin issuers and users. Policy differences between countries—such as Singapore’s progressive stance versus stricter regulations elsewhere—can lead to compliance challenges and uneven adoption.
Recommendation: Southeast Asian policymakers should collaborate to establish a unified regulatory framework for stablecoins, setting clear guidelines on licensing, consumer protection, and anti-money laundering (AML) compliance to build trust and consistency.
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Market Volatility and Pegging Risks
Stablecoins pegged to regional currencies are vulnerable to fluctuations in local currencies, potentially undermining their stability and user confidence. Insufficient or poorly managed reserves can further exacerbate risks.
Recommendation: Stablecoin issuers should maintain transparent, fully backed reserves and undergo regular independent third-party audits. Diversifying into currency baskets can also mitigate volatility risks.
Conclusion
In Q2 2025, the non-dollar stablecoin market in Southeast Asia achieved significant growth, led by XSGD—the sole SGD-pegged issuer—driven by partnerships with Grab and Alibaba. Operating across more than 8 EVM chains, supported by 8 issuers and 5 local currencies, DEX trading volume reached $136 million, concentrated on Avalanche and the Singapore Dollar, though down 66% from $404 million in Q1. The Monetary Authority of Singapore (MAS) advanced its framework for SGD- and G10-currency-pegged stablecoins, while Indonesia and Malaysia introduced regulatory sandboxes.
This growth highlights the potential of non-dollar stablecoins to enhance cross-border trade and financial inclusion in Southeast Asia. However, regulatory fragmentation, currency volatility, cybersecurity risks, and uneven digital infrastructure require careful management to ensure sustainable development.
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