Singapore-based fintech startup BasedApp unveiled a new rewards program allowing its debit card users to earn up to 1.5% annual percentage yield (APY) interest on XSGD stablecoin deposits.
The move aims to boost adoption of XSGD while providing BasedApp clients with an easy way to earn crypto yields.
“As a homegrown Singapore fintech, we’re thrilled to support XSGD and enable our users to capitalize on this special opportunity,” said BasedApp CEO Shannen Chong in an interview. “This promotional APY creates a use case for customers to try transacting with comply stablecoins while also earning attractive returns.”
The XSGD token is issued by blockchain infrastructure developer StraitsX and pegged 1:1 to the Singapore dollar. StraitsX received In-Principle Approval from the Monetary Authority of Singapore (MAS) as a Major Payment Institution, positioning XSGD to comply with upcoming stablecoin regulations.
How the BasedApp XSGD Rewards Work
BasedApp debit card holders can qualify for the 1.5% APY interest by maintaining average daily balances of at least 500 XSGD throughout each month. Average daily balances are calculated across the total deposits held across all days in a month.
Accrued interest is dispersed to customer accounts on the 5th of each following month. This recurrent rewards distribution aims to incentivize recurring XSGD savings behavior.
There are several methods for funding BasedApp accounts with XSGD, including bridging from other blockchains, transfers from centralized exchanges, and StraitsX’s native XSGD minting application. BasedApp plans to add direct bank integration for depositing Singapore dollars to be converted to XSGD.
The BasedApp promotion provides a strong incentive for Singapore residents to adopt XSGD over other stablecoins. As a Singapore-dollar-pegged token crafted specifically for the local market, XSGD was designed with an awareness of MAS’ expected crypto regulations.
With the sector awaiting clarity on stablecoin guardrails, the BasedApp offer creates an easy pathway for consumers to familiarize themselves with XSGD ahead of any policy announcements while earning yields in the process.
So long as average daily balances hit the 500 XSGD threshold, BasedApp clients can sit back and allow their accounts to accumulate interest automatically each month.