Blockchain used for overseas payments
Publication date: October 18, 2024 05:33
Small Medium Large The venture aims to use blockchain technology and stablecoins to make international money transfers more efficient and reliable.
Siam Commercial Bank (SCB) has partnered with Lightnet, a fintech company co-founded by Chatchavar Jaravanont, to launch Thailand’s first stablecoin. Stablecoins are digital assets pegged to gold or the dollar for cross-border payments and transfers.
The initiative also includes SCB 10X, which leverages blockchain technology to create solutions for cross-border transactions and marks an important milestone in Thailand’s financial innovation.
According to SCB, the solution promises to improve capital efficiency and reduce operating costs. Local currencies can be used for transactions, providing increased reliability and 24/7 access availability, the bank said.
According to the briefing, the integration of Fireblocks’ custody technology ensures that assets are protected on the backend, ensuring the highest level of protection and trust between parties.
SCB’s First Executive Vice President and Head of Digital Legal Affairs and Payments Thanawat Kittiswan said SCB’s collaboration with Litenet underscores their commitment to pioneering financial innovation and improving the money transfer experience for users. said.
“By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable, and accessible to everyone,” he said.
SCB 10X, the disruptive technology investment arm of SCB X Group, said the project is fully commercialized and demonstrates the impact of fintech innovation in improving both banking operations and customer experience.
“By leveraging blockchain technology, stablecoin-powered systems can significantly increase the speed, efficiency, and accessibility of international money transfers,” said Mukaya Panich, CEO and Chief Information Officer of SCB 10X. “We will improve it to the next level,” he said.
Tridobodhi Arunanonchai, vice chairman and group chief executive officer of Lightnet, said the project will also promote financial inclusion as it has low capital requirements for each transaction.
“This service will offer a unique value proposition to retail, corporate and institutional customers and strengthen Thailand’s position as a financial hub in Southeast Asia,” he said.
Michael Sharoff, CEO and co-founder of Fireblocks, said the company’s secure storage technology not only makes cross-border transactions faster and more efficient, but also meets the highest security standards. He said that is guaranteed.
“We believe this project sets a new benchmark for the integration of stablecoins into mainstream banking services, and we look forward to seeing its impact on how money moves across borders. ” said Shaulov.
SCB and Lightnet plan to extend the use case to corporate customers and facilitate both internal and external remittances.
“This expansion aims to further revolutionize cross-border financial transactions, providing businesses with the same benefits enjoyed by retail customers,” Thanawat said.
