Siam Commercial Bank (SCB) has teamed up with SCB 10X to launch the first cross-border payment using stablecoins in Thailand. The new solution, created together with Lightnet, is to provide a simple and fast cross-border payment solution using stablecoins and public blockchain.

Thailand Bank SCB Unveils New Stablecoin Remittance

In a press release sent to CoinGape, SCB has revealed that this new innovation of theirs is a great leap forward in modernizing cross-border payments. By using stablecoins—digital assets pegged to the U.S. dollar or gold—the system is designed to make cross-border transactions faster, more efficient, and cost-effective.

The service is available at any time of the day – the company’s clients can send and receive payments at any moment which also improves the flexibility comparing with the standard schedule of banking institutions. Since the users can transact using local currencies, the stablecoin system makes it easier to convert between the digital asset and the local currency, making the transaction seamless.

This initiative also removes the requirement of pre-funded accounts between financial partners thus enhancing capital utilization while at the same time cutting on expenses. This system is a major advancement for the financial services industry in Thailand, given the partnership between SCB and Lightnet.

Fireblocks Security of Cross-Border Transactions

Security is a key element of this new payment solution with Fireblocks offering the required custody solutions to secure the digital assets. Through the use of Fireblocks’ custody technology, SCB assures that the assets being traded are well protected and there is little chance of the assets being stolen or lost.

Michael Shaulov, the CEO and Co-founder of Fireblocks, said,

“With the Fireblocks’ secure custody technology, the cross-border transactions are not only faster and easier but also more secure.”

This added layer of protection is important as the financial industry is quickly embracing digital assets and security breaches are still a rising concern.

Thailand SEC Launches Sandbox to Boost Crypto Innovation

This stablecoin remittance project is among the first to complete the Bank of Thailand’s (BOT) regulatory sandbox which ended in October 2024. The sandbox, regulated by the Thailand Securities and Exchange Commission (SEC), provides the financial institutions the opportunity to experiment new financial solutions and products such as those based on blockchain technology and digital assets.

The sandbox was introduced by Thai regulators as a part of the larger plan to promote cryptocurrency and blockchain in the country. For instance, the SEC’s Digital Asset Regulatory Sandbox initiative launched in 2024 allows financial firms to conduct trials of cryptocurrencies in a legal framework. This was warmly embraced during the public hearing and has opened new possibilities for financial innovation within Thailand’s digital asset market.

The completion of SCB’s stablecoin project from the sandboxing process shows that the system has undergone proper regulatory assessment and is now ready for the commercial market. This milestone also paves way forward for the adoption of blockchain technology in the traditional banking sector.

Plans for Corporate Expansion

Following the system’s successful launch for retail users, SCB and Lightnet are now preparing to expand the service to corporate clients. The aim is to offer businesses the same advantages currently enjoyed by individual customers, including lower transaction costs, faster payments, and 24/7 availability.

Eliminating pre-funding requirements and operational inefficiencies will streamline cash flow management for corporate clients, especially those engaged in international trade. This will provide businesses with a seamless and cost-effective solution for both inbound and outbound remittances.

The post Thailand Bank SCB Unveils New Stablecoin Remittance Solution appeared first on CoinGape.

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Filed under: News - @ October 16, 2024 10:22 pm