Thailand’s Siam Commercial Bank launches the nation’s first stablecoin-powered cross-border payment system, enhancing transaction efficiency.
Efficient Cross-border Payments via Stablecoin Technology
Siam Commercial Bank has introduced Thailand’s first stablecoin-based cross-border payment system. The bank’s innovation simplifies international transactions by leveraging stablecoins, digital currencies pegged to assets like gold or the U.S. dollar. This initiative, developed with partners SCB 10X and Lightnet, aims to offer faster and more cost-effective international money transfers.
Innovative Payment System
The stablecoin system runs on a public blockchain network, supported by Fireblocks’ security technology. This platform provides 24/7 cross-border transaction capabilities, improving capital efficiency. Unlike traditional systems, it eliminates the need for banks to hold pre-funded accounts with international partners, reducing operational costs while enhancing transaction speed and security.
Seamless Currency Conversion
Users benefit from seamless currency conversion as they can transact using local currencies. This eliminates unnecessary conversion layers, providing a more straightforward experience for users to send or receive funds globally. The reduction in clearance layers and streamlined currency exchange further enhances the cost-effectiveness of the service.
Regulatory Sandbox Milestone
The project successfully completed its trial phase in the Bank of Thailand’s Digital Asset Regulatory Sandbox in October 2024. This sandbox, launched earlier to encourage crypto adoption, allowed companies to test digital asset solutions under flexible regulations. SCB’s stablecoin payment system is now fully commercialized and sets a new benchmark in the country’s evolving digital banking space.
Leadership in Digital Finance
Siam Commercial Bank’s latest venture into blockchain technology reinforces its leadership in the financial sector. By adopting cutting-edge technology, SCB offers a competitive edge, transforming the traditional banking model and positioning itself as a leader in Thailand’s digital asset market.
Looking Ahead: SCB’s Role in Digital Transformation
This stablecoin initiative represents SCB’s commitment to embracing blockchain and fostering digital transformation. It highlights the bank’s forward-thinking approach and its dedication to providing faster, more secure financial services that meet modern consumer demands.
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