Singapore’s dtcpay plans to drop Bitcoin and Ethereum in favor of stablecoins in 2025

Singapore’s digital payment provider, dtcpay, has announced plans to exclusively support stablecoins for its payment services by 2025, discontinuing support for Bitcoin (BTC) and Ethereum (ETH). This major shift will begin in January 2025, with the company phasing out Bitcoin and Ethereum support by the end of this year. Despite both BTC and ETH remaining the largest cryptocurrencies by market capitalization, dtcpay will no longer accept them for token payments, focusing instead on stablecoins.

The company stated that the move is part of a strategic transition aimed at providing customers with a more reliable, scalable, and secure payment experience. Stablecoins, which are pegged to fiat currencies like the U.S. dollar, have gained widespread popularity in the financial sector for their stability and predictability. dtcpay’s decision to adopt a stablecoin-only model reflects a broader trend of increasing reliance on stablecoins, particularly in regions like Singapore.

In addition to continuing support for Tether (USDT) and USD Coin (USDC), dtcpay plans to add more stablecoins to its payment platform, including First Digital USD and Worldwide USD. This transition aligns with the growing global use of stablecoins, which are seen as more dependable than the often volatile cryptocurrencies like Bitcoin and Ethereum.

The trend toward stablecoins in Singapore has been accelerating. According to a report from Chainalysis, stablecoin payments in the country surged to nearly $1 billion USD in the second quarter of 2024, a 100% increase from the first quarter, when the value was just under $500 million. Additionally, 75% of stablecoin payments using Singapore’s XSGD were valued at $1 million or less, with a significant portion of transactions under $10,000, pointing to growing retail adoption.

This shift also comes amid regulatory developments in Singapore, where the Monetary Authority of Singapore (MAS) introduced a regulatory framework in November 2023 aimed at enhancing the stability of single-currency stablecoins. The framework targets non-bank issuers of stablecoins linked to the Singapore dollar or other G10 currencies with a circulation exceeding S$5 million, further solidifying the country’s commitment to fostering a stable and secure cryptocurrency ecosystem.

Overall, dtcpay’s decision to phase out support for Bitcoin and Ethereum in favor of stablecoins reflects both the growing preference for stable digital currencies and the increasing regulatory focus on stablecoin markets, particularly in Singapore.