Siam Commercial Bank (SCB) has partnered with SCB 10X to launch the first cross-border payments using stablecoins in Thailand. The new solution, created in collaboration with Lightnet, is to provide a simple and fast cross-border payment solution using stablecoins and public blockchains.
Bank of Thailand SCB announces new stablecoin transfers
In a press release sent to CoinGape, SCB revealed that this new innovation is a major step forward in the modernization of cross-border payments. The system is designed to make cross-border transactions faster, more efficient, and cost-effective by using stablecoins, which are digital assets pegged to the US dollar or gold.
This service is available any time of the day. The company’s customers can send and receive payments at any time, which also provides greater flexibility compared to banking institutions’ standard schedules. Since users can transact using their local currency, the stablecoin system facilitates the conversion between digital assets and local currencies, making transactions seamless.
This initiative also removes the requirement for pre-funded accounts between financial partners, enhancing capital utilization while reducing expenses. With the partnership between SCB and Lightnet, this system will be a major advancement for Thailand’s financial services industry.
Fireblocks Cross-border transaction security
Security is a key element of this new payment solution, and Fireblocks provides the storage solutions you need to protect your digital assets. Through the use of Fireblocks custody technology, SCB ensures that the assets being traded are well protected and there is little chance that the assets will be stolen or lost.
Michael Sharoff, CEO and co-founder of Fireblocks, said:
“Fireblocks’ secure storage technology makes cross-border transactions not only faster and easier, but also more secure.”
This additional layer of protection is important as the financial industry is rapidly adopting digital assets and concerns about security breaches remain high.
Thai SEC launches sandbox to foster cryptocurrency innovation
This stablecoin remittance project was one of the first to complete the Bank of Thailand (BOT) regulatory sandbox, which ended in October 2024. This sandbox is regulated by the Securities and Exchange Commission of Thailand (SEC) and provides financial institutions with the opportunity to experiment with new finance. Solutions and products based on blockchain technology and digital assets, etc.
The sandbox was introduced by Thailand’s regulator as part of a larger plan to promote cryptocurrencies and blockchain in the country. For example, the SEC’s Digital Asset Regulatory Sandbox Initiative, launched in 2024, will allow financial companies to test cryptocurrencies within a legal framework. This was warmly received at public hearings and opens up new possibilities for financial innovation in Thailand’s digital asset market.
The completion of SCB’s stablecoin project through the sandboxing process indicates that the system has undergone appropriate regulatory evaluation and is ready for commercial market launch. This milestone also paves the way for the implementation of blockchain technology in the traditional banking sector.
corporate expansion plan
Following the successful launch of the system for retail users, SCB and Lightnet are now preparing to expand the service to corporate customers. The aim is to offer businesses the same benefits that retail customers currently enjoy, including lower transaction costs, faster payments, and 24/7 availability.
Eliminating up-front financing requirements and operational inefficiencies streamlines cash flow management for corporate customers, especially those engaged in international trade. This enables businesses to offer a seamless and cost-effective solution for both inbound and outbound remittances.
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Kelvin Munene Murithi
Kelvin is a renowned author with expertise in cryptocurrencies and finance, and holds a bachelor’s degree in actuarial science. Known for his sharp analysis and insightful content, he has a strong command of the English language and excels at conducting thorough research and providing timely updates on the cryptocurrency market.
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