Grab, Southeast Asia’s super app and the popular ride-hailing technology start-up in the region, has taken a leap into Web3 services in Singapore by collaborating with a leading global financial technology firm, Circle. The collaboration offers its users a range of blockchain-enabled features.
In the middle of September 2023, Circle announced the partnership of the new Web3 services available for Singapore-based Grab users through the Grab Web3 Wallet. The collaboration will involve the integration of Circle’s new Web3 Services platform into the Grab app, allowing users to access digital assets, stablecoins and smart contracts.
Overview of the Project
As part of the pilot, Grab app users can now set up Web3 wallets to participate in blockchain rewards programs and even make payments using nonfungible tokens (NFTs) vouchers. The company collaborated with the Monetary Authority of Singapore to introduce NFT vouchers for various popular dining and experimental offerings within the city. While Grab has not officially commented on this development, Grab Web3 Wallet offers SG Pitstop Pack NFT vouchers at popular stores in Singapore for the F1 Singapore Grand Prix.
The news about Grab’s Web3 services was revealed last week, with industry observers spotlighting a Web3 tab with an integrated crypto wallet on the Grab app’s interface on September 7 2023. Co-founder and CEO of Circle Jeremy Allaire mentioned on X (formerly known as Twitter) that it was promising to see major Web2 firms adopting blockchain technology. Allaire posted:
“Last week X was a buzz wondering about the newly launched Web3 Wallet, the Grab Singapore app. Today, Circle announced its partnership with Grab to power its new Web3 Wallet experience… Piloting our technology with Grab’s customers brings us closer to realising the full potential of responsible digital assets innovation.”
According to Grab, the merger puts the company in control of Southeast Asia’s ride-sharing market. The company wrote:
“Grab is committed to cooperating with local regulators concerning the acquisition. Grab believes the acquisition will add to, among others, vibrant and competitive ride-hailing, delivery and transportation spaces and will make a merger notification to the Competition Commission of Singapore.”
Co-founder and group CEO Anthony Tan emphasised that the acquisition marks the beginning of a new era and a step toward fulfilling the promise to customers and the company. Tan noted that they are humbled that a company born in Southeast Asia has built one of the largest platforms that millions of consumers use daily and provides income opportunities to over 5 million people..
Background of the Grab App
Grab app was founded in 2012 as MyTeksi, a multinational technology company headquartered in Singapore. The firm operates a super-app for ride-hailing, food delivery and digital payments services on smartphones in countries such as Singapore, Cambodia, Malaysia, Vietnam, Thailand, the Philippines, Myanmar and Indonesia.
Experts at Bitcode Method mentioned that, the Grab app serves more than 187 million users in 330 cities across Southeast Asia and had a disabled user base of about 34.9 million monthly transactional users as of the third quarter of 2023.
Grab’s involvement in Web3 technology follows a pilot study performed earlier this year. The study focused on using digital assets like central bank digital currencies, tokenised bank deposits and stablecoins on a distributed ledger. Grab, Amazon, and Southeast Asian financial services provider FAZZ collaborated on a pilot use case that involved escrow arrangements for online retail payments.
The partnership allowed payments to be released to the merchant only when the customer received the purchased items, thus ensuring both parties. The collaboration between Circle and Grab builds on the company’s ongoing expansion in Singapore.
Earlier in the year, on June 7 2023, Circle obtained a Major Payment Institution (MPI) licence from the Monetary Authority of Singapore after officially opening its office in May. The MPI licence offered Circle digital payment tokens and domestic and cross-border money transfer services. Allaire mentioned that the company identified Singapore as its principal hub in Asia and that the region would be integral to Circle’s global expansion.
According to a study found in 2022, 6% of the world’s crypto funds are based in Singapore and tied with Switzerland and Hong Kong for third place worldwide, following the United Kingdom and the United States for that criterion. On April 15 2023, Circle cooperated with Tribe, Singapore’s first government-approved blockchain ecosystem builder, to launch the Circle Hacker House to support local Web3 development. The platform consisted of developers, innovators, founders and Web3 enthusiasts forging new connections and gaining hands-on experience with the Circle ecosystem and the benefits of USDC.
Singapore is a country that provides a positive environment for crypto through legislation and has a high rate of crypto adoption due to its low-tax jurisdiction. The collaboration between Grab and Circle intends to bring blockchain technology to consumer and enterprise applications, providing a secure and dependable platform for users in Singapore and beyond.
