Thailand’s SCB introduces a stablecoin remittance solution that streamlines 24/7 cross-border payments while increasing security and efficiency.
Siam Commercial Bank (SCB) has partnered with SCB 10X to introduce Thailand’s first cross-border payment solution using stablecoins.
This new system, developed in collaboration with Lightnet, aims to provide a faster and simpler cross-border payment service utilizing stablecoins and public blockchain technology.
Thailand’s SCB Launches Stablecoin-Based Remittance
In a press release shared with CoinGape, SCB announced that this innovation marks a significant step in modernizing cross-border payments.
The system leverages stablecoins, digital assets backed by the U.S. dollar or gold, to make international transactions quicker, more efficient, and cost-effective.
The service operates around the clock, allowing customers to send and receive payments anytime, which enhances flexibility compared to traditional banking schedules.
Users can transact in local currencies, making converting between stablecoins and local currencies easier, thus offering a seamless transaction experience.
This solution also eliminates the need for pre-funded accounts between financial partners, improving capital utilization and reducing costs.
The partnership between SCB and Lightnet represents a major advancement for Thailand’s financial services sector.
Fireblocks Enhances Security for Cross-Border Transactions
Security is a core aspect of this payment solution, with Fireblocks providing custody services to safeguard digital assets.
Using Fireblocks’ technology, SCB ensures that the assets involved in transactions are secure, minimizing the risk of theft or loss.
Michael Shaulov, Fireblocks’ CEO and Co-founder, emphasized,
“With Fireblocks’ secure custody technology, cross-border transactions are not only faster and easier but also more secure.”
This added layer of security is crucial as the financial sector increasingly adopts digital assets, and concerns over security breaches persist.
Thailand SEC Supports Crypto Innovation with Regulatory Sandbox
SCB’s stablecoin remittance system is among the first to successfully complete the Bank of Thailand’s (BOT) regulatory sandbox, which concluded in October 2024.
The sandbox, overseen by the Thailand Securities and Exchange Commission (SEC), allows financial institutions to test new financial products and solutions, including those based on blockchain and digital assets.
The sandbox initiative is part of a broader effort by Thai regulators to encourage the growth of cryptocurrency and blockchain technologies in the country.
For instance, the SEC’s 2024 Digital Asset Regulatory Sandbox allowed firms to trial cryptocurrencies within a legal framework, which was positively received during public consultations.
This development has opened up new opportunities for financial innovation in Thailand’s digital asset market.
The completion of SCB’s stablecoin project within the sandbox indicates that the system has passed regulatory scrutiny and is now ready for the commercial market.
This achievement also signals the growing acceptance of blockchain technology within traditional banking.
Plans for Corporate Expansion
Following the system’s successful launch for retail users, SCB and Lightnet are planning to extend the service to corporate clients.
This expansion will offer businesses the same benefits that individual users currently enjoy, such as reduced transaction costs, faster payments, and 24/7 availability.
By removing pre-funding requirements and addressing operational inefficiencies, the system will streamline cash flow management for corporate clients, particularly those involved in international trade.
This will provide businesses with a smooth, cost-effective solution for both inbound and outbound remittances.
