Isabella García
The Siam Commercial Bank (SCB), one of Thailand’s largest banks, has introduced stablecoin-powered cross-border payment services for its customers. This marks the first instance of stablecoins being utilized for international remittances within the traditional financial sector in Thailand.
In a statement on Wednesday, SCB announced its collaboration with Lightnet and Fireblocks to manage the necessary infrastructure and custody requirements. The project, which had previously been part of the Bank of Thailand’s regulatory sandbox, is now “fully commercialized.”
SCB highlighted that the new service enhances capital efficiency by removing the need for pre-funding between partners. This reduces operational costs and allows users to conduct transactions in local currencies.
“This solution will bring significant improvements to customers’ cross-border money transfer experiences by lowering transaction times and costs, and it will be available 24/7,” said Tridbodi Arunanondchai, CEO of Lightnet. He also emphasized that the project supports financial inclusion by reducing the capital required for each transaction.
Increasing Stablecoin Adoption
In a past podcast interview with PRIME, Fireblocks’ co-founder and CEO Michael Shaulov explained that stablecoins and tokenized real-world assets are helping bridge traditional finance (TradFi) and the cryptocurrency world. Shaulov further noted that SCB’s initiative sets a new standard for incorporating stablecoins into mainstream banking.
Stablecoins, which are typically tied to fiat currencies like the U.S. dollar, are becoming “systemically important,” according to analysts at Bernstein. The total circulating supply of stablecoins is nearing $180 billion, approaching its peak from the 2022 bear market, as per PRIME data dashboard.
