Home > News > Business > Thailand’s first stablecoin, UAE’s DAO regulation
Southeast Asia is one of the fastest growing regions in the world and home to some of the fastest developing economies. This demands fast, cost-effective, and efficient payment and remittance systems.
Blockchain and digital assets are filling this void. In Thailand, one of the leading banks has introduced the country’s first stablecoin for cross-border payments and remittances, while in Singapore, banking giant DBS (NASDAQ: DBSDY) has introduced real-time blockchain payments for institutions.
The UAE is a regional leader in digital asset regulation, and this time it is targeting DAOs, an area that is notoriously difficult for European and US regulators to police.
Thailand’s Siam launches cross-border stablecoin
Siam Commercial Bank, Thailand’s fourth largest lender, recently announced the introduction of a stablecoin for cross-border payments and remittances.
The Bangkok-based bank partnered with Litenet, a fintech company founded by Fortune Magazine owner and one of the country’s richest men, Litenet, on the initiative. The project graduated from the regulatory sandbox run by the Bank of Thailand and also involved Siam’s innovation arm SCB 10X.
In the announcement, the lender claimed that the stablecoin relies on blockchain to increase the efficiency of cross-border transfers. Cross-border remittances are an area that has resisted digital transformation for decades and remains costly, inefficient and slow. However, the bank withheld details about the blockchain on which it built its solution.
SCB says the dollar-pegged stablecoin promises to reduce costs and improve capital efficiency, enabling 24/7 remittances, but this is an improvement over traditional solutions that are only available during banking hours. This is a further improvement in comparison.
“By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable and accessible to everyone,” said Tanawaton, Head of Digital Payments at SCB.・Kitty Swan said.
Mukaya Panich, CEO of SCB 10X, added that the Fireblocks-managed stablecoin “drastically increases the speed, efficiency, and accessibility of international money transfers” by leveraging blockchain.
In fact, blockchain is a game-changer for cross-border remittances. Unlike traditional systems, blockchain-powered solutions like Centbee are instant, inexpensive, available 24/7, and secure.
However, not all blockchains are created equal, and they are not specifically created for cross-border transfers. Only enterprise networks like BSV, which can scale without limits and don’t charge high usage rates, can transform a sector that saw $190 trillion in transactions last year. With the Teranode upgrade in 2025, BSV will process over 100 billion transactions per day, making it a better solution than centralized options.
Singapore’s DBS launches tokenized banking services
Singapore’s largest bank has introduced a blockchain-based service that promises faster, cheaper and more efficient transactions for its institutional customers. DBS Bank said the new DBS Token service will provide users with instant payment settlement available 24/7. The bank has deployed its services on a permissioned private network that is compatible with Ethereum.
DBS joins dozens of financial institutions that are shunning public blockchains, arguing that they do not have sufficient control over their solutions, which are critical to banks. However, BSV allows developers to deploy an overlay network on top of the main network, giving them control while leveraging the decentralization, security, and efficiency of a public network.
Lim Chong, head of global transaction services at DBS, said the new token service is in response to the surge in demand for “a new generation of ‘always on’ banking services”.
“This represents a significant step forward in transaction banking and shows how established financial institutions can leverage blockchain technology to deliver new breakthrough features and experiences,” he said. .
DBS Token Services offers several solutions, including Treasury Tokens, which allow users to trade multiple currencies 24 hours a day for streamlined liquidity management. Smart contracts also enable conditional and programmed payments, allowing for a high degree of automation.
UAE commits to DAO law
The UAE has made further progress towards becoming the ultimate digital asset hub in the Middle East. The country has one of the most advanced legal frameworks in the region and is currently extending its scope to decentralized autonomous organizations (DAOs).
Ras Al Khaimah Digital Asset Oasis has revealed that a new regulatory regime for DAOs will be introduced on Friday, October 25th. Oasis is a free economic zone in the northern UAE established to foster digital asset companies.
NeosLegal, a local law firm with expertise in the field of digital assets, partnered with Oasis to develop this regime. Irina Heber, a partner at the company, told a media outlet that the framework aims to provide legal recognition and protection to DAOs.
It will also clarify aspects such as tax liability and ownership of on-chain and off-chain assets by DAO members. It also applies to the legal protection of individual members against personal liability.
Regulation of DAOs has proven complex globally. In the United States, the Commodity Futures Trading Commission (CFTC) made history in 2022 when it took action against Ooki DAO for violating the Commodity Exchange Act. Despite huge opposition from the “crypto bros”, the watchdog relented and the DAO was forced to shut down and pay a $643,000 fine.
See how Middle East governments are finding great use cases for blockchain: Ahmed Yousif
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