StraitsX Singapore Dollar (XSGD)

Backing and reserves

The reserve reports are Independent Accountant's Reports signed by KK YAP & ASSOCIATES, Public Accountants and Chartered Accountants, Singapore. The latest reports are listed on the StraitsX XSGD page. The engagement is conducted under Singapore Standard on Assurance Engagements 3000 (Revised), established by the Institute of Singapore Chartered Accountants, with independence asserted under the ACRA Code. The firm's name sits in the document's text layer.

The accountant's own language is the part to read closely. The firm states that it examined management's assertion, that the examination was planned and performed to obtain reasonable assurance, and it concludes with a positive opinion that the reserve account information is fairly stated in all material respects. Reasonable assurance carrying a positive opinion is the strongest form these engagements take, and it is not what a reader should assume from the presence of an accountant's letterhead.

The reserve assets are cash and Singapore dollar bonds or notes with no more than three months residual maturity issued by the Government or the Monetary Authority of Singapore, or those instruments held under overnight reverse repurchase agreements with counterparties rated at least AA minus by Fitch or S&P or Aa3 by Moody's. At 30 June 2026 the report gave total par value of S$ 23,661,169 against reserve assets of S$ 23,674,708, and the 15 June report gave 27,339,116 and the 31 May report 26,568,488, so the token contracted through the second half of June. At 30 June the composition was S$ 11,330,779 in cash and S$ 12,343,929 in bonds or notes in that category.

At 31 May those same two lines were S$ 15,013,117 and S$ 11,569,694. Read the two columns together and the reserve did not simply shrink with the token: cash fell by S$ 3,682,338 while the bond holding rose by S$ 774,235, so the issuer bought government paper during a month of net redemption and the reserve went from 56.5 percent cash to 47.9 percent. The buffer over circulation is thin, S$ 13,539 at 30 June, about six hundredths of a percent. A thin buffer on a reserve marked daily is a different thing from a thin buffer on a static one, and this page reports it as disclosed policy rather than as a safety score.

Read the boundary, and on this report it falls somewhere a reader would not expect. The accountant's report states, in its own voice and without attributing it to management, that the company has satisfied four Monetary Authority of Singapore requirements: reserve assets held in approved asset categories, valued at mark to market daily, held in segregated accounts on trust and with permitted custodians, and held in the currency XSGD is pegged to. The opinion paragraph that follows names only the Reserve Account Information as its subject, so those four points sit inside a signed accountant's report without being named as what the assurance covers.

Which of those four the examined figure actually carries is a question the criteria answer, and they answer it unevenly. Criterion B defines the reserve value "with characteristics as per paragraph 3 with composition as per paragraph 2". Paragraph 2 is the composition table. Paragraph 3 gives the currency of denomination and, "where applicable", daily mark to market valuation. Paragraph 4 is the one the criterion does not cite, and paragraph 4 is where the report defines the safeguarding institution: a bank licensed under section 7 or 79 of the Banking Act 1970, or a custodian licensed under section 82 of the Securities and Futures Act 2001.

So three of the four requirements sit in paragraphs the criteria point at, and the fourth is custody. Criterion B does use the words "held in a trust account maintained with a safeguarding institution", so the phrase is inside the criterion while the standard behind the phrase is not. Segregated custody is stated twice in this report, in management's paragraph 4 and in the accountant's list, and neither of those is a paragraph the examined figure is defined against. That is a fact about where the boundary falls rather than a doubt about the arrangement. No institution is identified anywhere in the report. The issuer's risk warnings page names the trust account banks as CIMB Bank Berhad Singapore Branch, DBS Bank Ltd and Standard Chartered Bank (Singapore) Ltd, or other financial institutions permitted by MAS.

The daily valuation carries its own hedge, which belongs to the document rather than to us. "Where applicable" is the report's wording, and cash has no market price, so daily marking bites on the bond half of the reserve, 52.1 percent of it at 30 June. The Monetary Authority of Singapore's financial institutions directory lists StraitsX SGD Issuance Pte. Ltd. as a Major Payment Institution with Digital Payment Token Service as the regulated activity.

One gap in the report is worth naming precisely because the rest of it is strong. It describes no procedure performed on the blockchains themselves. Every chain reference sits inside management's assertion, never inside the accountant's description of what they did. So the opinion covers the reserve account and the company's assertion about tokens in circulation, and an independent read of the tokens is not part of the work described.

Sources: StraitsX XSGD page, reserve attestation reports, XSGD SCS Reserve Account Report, 30 June 2026, XSGD SCS Reserve Account Report, 15 June 2026, XSGD SCS Reserve Account Report, 31 May 2026, StraitsX risk warnings, regulatory notices and disclosures, MAS directory, StraitsX SGD Issuance Pte. Ltd.

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