SINGAPORE - Global payments firm Circle Internet Financial has partnered ride-hailing operator Grab to test out a Web3, blockchain-based wallet in a pilot here.
As of Thursday, all Singapore-based users of Grab’s ride-hailing app will be able to set up a blockchain-enabled wallet called Grab Web3 Wallet that holds digital assets.
Users can then earn rewards and collectibles, as well as use non-fungible token (NFT) vouchers with the new wallet.
Boston-based group Circle, which issues stablecoins USDC and Euro Coin, said on Thursday that its new Web3 services platform will be integrated into the Grab app to provide Web3 experiences.
Web3 is a new iteration of the Internet that incorporates concepts such as decentralisation and blockchain technology.
For a start, the Grab Web3 wallet will support the use of the SG Pitstop Pack NFT vouchers at popular stores and tourist attractions in Singapore during the upcoming Formula One Singapore Grand Prix.
Grab, which operates in eight countries in the region and had nearly 31 million active monthly users as at March 31, said it is focused on testing the concept of programmable money and its use cases in Singapore.
“We hope that this pilot will enable us to gain new learnings about blockchain wallet payment and the potential of the future of money. We’ll continue to watch and cautiously explore this space,” Grab told The Straits Times.
It added that its existing wallet GrabPay enables consumers to use fiat money to pay for their car rides, deliveries and offline purchases at partnering merchant stores in a cashless manner.
One of the aims of the pilot is to demonstrate real-world use of purpose-bound money, said Circle.
A purpose-bound money protocol works on blockchain technology and enables users to access digital money, without intermediaries, using their preferred wallet provider.
In June, the Monetary Authority of Singapore (MAS) launched a White Paper proposing standards for the use of digital money, including purpose-bound money.
Speaking with ST at Token2049, the largest crypto event in Singapore, co-founder and chief executive of Circle Jeremy Allaire said his team had been talking with Grab for well over a year.
He said Circle was working on Web3 services technology and Grab wanted to bring Web3 technology into its app. “I think we found a really good fit in terms of what we were designing and building and what they envisioned and needed, in terms of doing something that’s simple and safe for users.”
When asked about the next steps after the pilot, Mr Allaire said Circle wants to partner Web2 companies which have been innovating and solving problems for consumers at scale, and then look at how to bring Web3 technology to those companies.
“We think that that will also then create demand for using blockchain native money like stablecoins.”
Stablecoins are cryptocurrencies whose values are pegged to that of another currency, commodity, or financial instrument.
Circle’s Singapore entity officially opened its office in May.
In June, it obtained from the Monetary Authority of Singapore a major payment institution licence that allows it to offer digital payment token services.
The firm then announced in July that it would undergo a restructuring that will have it focus more on Asia and new growth areas in Web3. It also made a “marginal” cut in jobs across markets, including Singapore.
American companies in the digital asset space have been diversifying their businesses as United States regulators close in on the sector with lawsuits.
This has prompted many to flock to Asia, which they view as a key growth market.
