Siam Commercial Bank (SCB) has partnered with SCB 10X to launch the first cross-border payment using stablecoins in Thailand. Developed together with Lightnet, the new solution aims to enable simple and fast cross-border payments using stablecoins and public blockchain.
Innovative Payment System
In its press release sent to CoinGape, SCB stated that this innovation is a big step in modernizing cross-border payments. By using stablecoins pegged to the US dollar or gold, the system aims to make cross-border transactions faster, more efficient and more cost-effective.
The service is available around the clock; The company’s customers can send and receive payments at any time, providing greater flexibility over banking institutions’ standard programs. Since users can transact using their local currencies, the stablecoin system facilitates conversion between the digital asset and the local currency, making the transaction seamless.
Security and Cooperation
Security is a key element in this new payment solution, and Fireblocks offers the custody solutions needed to secure digital assets. Thanks to the use of Fireblocks’ custody technology, SCB guarantees that the assets traded are well protected and the risk of assets being stolen or lost is low.
“With Fireblocks’ secure storage technology, cross-border transactions become not only faster and easier, but also safer,” said Fireblocks CEO and Co-Founder Michael Shaulov. he said.
This additional layer of protection is an important factor as the financial industry rapidly embraces digital assets and security breaches are still on the rise.
Digital Asset Innovation and Regulation
The stablecoin transfer project is among the first projects to complete the Bank of Thailand’s (BOT) regulatory incubation program, which ends in October 2024. The incubation program organized by the Securities and Exchange Commission (SEC) of Thailand offers financial institutions the opportunity to try new financial solutions and products.
The SEC’s digital asset regulatory incubation initiative launched in 2024 and provides financial firms with the opportunity to trial cryptocurrencies within a regulatory framework. This initiative was received positively in public hearing and opened new possibilities for financial innovation in Thailand’s digital asset market.
The completion of the incubation process of SCB’s stablecoin project indicates that the system has passed appropriate regulatory evaluations and is ready for the commercial market. This development is considered an important step for the adoption of blockchain technology in the traditional banking sector.
Corporate Expansion Plans
Following the successful launch of the system for retail users, SCB and Lightnet now plan to expand the service to enterprise customers. Its aim is to offer businesses the benefits that individual customers currently enjoy; To provide lower transaction costs, faster payments and 24/7 service.
Eliminating upfront financing requirements and operational inefficiencies will simplify cash flow management, especially for corporate clients engaged in international trade. This will offer businesses a seamless and cost-effective solution for both inflow and outflow transfers.
The new stablecoin-based solution is considered an important step in the digitalization of financial services in Thailand, and similar projects are expected to increase in the future.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
