US government shuts down, Singapore dollar-backed stablecoin XSGD launched; time to look at opportunities in the crypto market
Cryptocurrencies are back in favor.
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US government shutdown
Funding for the US government has been cut after Republicans and Democrats failed to agree on a spending bill. The White House announced that House Republicans passed a clean piece of legislation to extend current government funding but nearly every Democrat Senator voted against the bill.
It is not likely that an agreement between both parties will be reached soon and the impasse could extend beyond 35 days, which is the longest time a shutdown has been in effect in history.
The US administration announced that they will be laying off “non-essential” government workers to reduce public expenditure.
US 20-year government bonds have reacted positively to the news so far (see chart above).
Recall, that I issued a market alert on 6 September on 20-year US bonds (ISIN: US912810UL07) and highlighted that they were attractive.
Cryptocurrency event in Singapore
Token2049, the world’s largest cryptocurrency conference, opened in Singapore with a record 25,000 attendees from 160+ countries. The event reflects growing global crypto adoption, boosted by a friendlier US regulatory stance and promises from the Trump administration to make America a “bitcoin superpower.”
Key speakers included Donald Trump Jr., who promoted his stablecoin project, and industry leaders from CME Group, Bitwise, and Circle, who highlighted surging institutional interest, new crypto ETFs, and rising demand for US dollar stablecoins.
Beyond official forums, the conference hosted 1,000+ side events where startups sought funding and discussed regulation, technology, and sensitive uses of crypto, such as moving money out of China.
XSGD debuts on Coinbase
XSGD, Singapore’s only dollar-backed stablecoin issued by StraitsX, made its debut on US crypto exchange Coinbase on 1 October. Pegged 1:1 to the Singapore dollar and backed by reserves at DBS and Standard Chartered, XSGD now enables instant SGD-linked transactions for millions of Coinbase users globally.
Its launch comes amid rising demand for stablecoins, which make up 7% of the crypto market and could grow from USD 250 billion to USD 2 trillion by 2028. Singapore, backed by a 2023 MAS regulatory framework, is positioning itself as a stablecoin hub.
XSGD is also powering Singapore’s first stablecoin scan-to-pay service via OKX Pay, allowing GrabPay merchants to accept direct stablecoin payments.
Gold is gaining interest from institutional players
The chart from the World Gold Council shows that the percentage of gold holdings in central bank reserves have increased.
Sentiment was bearish in August
But State Street institutional risk appetite remained leaning towards risk seeking.
European manufacturing PMIs are leading, higher than US and nearly on par with China.
The longer end of the yield curve has reached its steepest level in years, as fiscal and political concerns contribute to upward pressure on term premiums.
Dollar-Cost-Averaging Model Portfolios
As seen in the figures below, the model portfolios are doing very well, clearly outperforming the SPY ETF DCA benchmark and SGD 2.5% rate since inception.
If you did not know, Dollar Cost Averaging is the secret to building wealth. Read here on why.
If you become a subscriber, I will tell you how to construct these model portfolios.
So, what is attractive today?
Aptos (APT) revealed that it has entered into a partnership with the Trump family-backed World Liberty Financial (WLFI). This collaboration sets the stage for the launch of the USD1 stablecoin on the Layer-1 Aptos Network, scheduled for 6 October 2025.
At the Token2049 conference in Singapore, Aptos CEO Avery Ching confirmed that discussions with WLFI regarding USD1 integration have been ongoing.
The rollout marks the first time a Move-based blockchain will host USD1. The stablecoin leverages Chainlink’s Cross-Chain Interoperability Protocol (CCIP), allowing secure transfers across major networks such as Ethereum (ETH), BNB Chain (BNB), and Tron (TRX).
From launch day, USD1 will be supported by a range of DeFi protocols within the Aptos ecosystem, including Echelon, Hyperion, Thala, Panora, and Tapp. Popular wallets and exchanges like Petra, Backpack, OKX, Bitget Wallet, OneKey, Nightly, and Gate Wallet will also enable users to store, convert, and manage USD1 seamlessly.
Liquidity pools and on-chain rewards will be introduced immediately to encourage the stablecoin’s adoption for staking, payments, trading, and other DeFi utilities.
Alongside USD1, Aptos already supports Tether’s USDT, offering cheaper gas fees compared with other blockchains.
USD1, issued by WLFI and co-founded by Eric Trump, is backed by U.S. Treasuries, cash, and cash equivalents to maintain its 1:1 dollar peg. Its reserve assets are secured by BitGo Trust Company.
I think the development is positive for Aptos, so APT/USDT is attractive @4.881. Go Long here.
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