Siam Commercial Bank Launches Thailand’s First Stablecoin Cross-Border Payment System
Siam Commercial Bank has announced the launch of the first stablecoin-based cross-border payment system in Thailand. The bank, together with SCB 10X and Lightnet, wants to provide a game-changing way of making international payments with stablecoins, which are such types of digital assets pegged against leading fiat currencies like the U.S. dollar or also backed by gold.
This new system offers a much faster and effective method of cross-border transactions, enabling the user to send money across the globe with reduced cost. In SCB, there is the use of a public blockchain network that ensures transparency and security of transactions where Fireblocks, the leading digital assets custody provider, ensures that robust security is accorded to the digital assets involved.
Simplifying International Payments
Operating 24/7, the system negates the need to keep pre-funded accounts with foreign banking counterparts. This further facilitates not only capital efficiency but also lowers the relative cost of operations. Since there are no multiple layers of clearance and currency conversions, the service is seamless for the users. Transactions are completed in local currencies further simplifying the process.
According to SCB, the new system allows customers to send and receive funds internationally much faster and at lower costs than before-a quantum leap in fintech.
Success in the Regulatory Sandbox
Supporting Thailand’s increasing digital economy, the financial regulators of the country launched a Digital Asset Regulatory Sandbox back in August 2024. This was to allow companies to test crypto-related services with looser guidelines, in the hope of further developing Thailand’s digital asset market.
Its stablecoin-based payment system passed the regulatory sandbox of the Bank of Thailand in October 2024, making it a leader in the digital banking scene in the region.
Leading the Digital Banking Revolution
It is through the creation of this highly innovative payment system that SCB has now set the pace for developments of blockchain technology applications in the financial sector in Thailand. The bank continues to further its leading position in the arena of digital banking through the provision of customers with unique and state-of-the-art solutions in financial services.
