KEY FACT: Siam Commercial Bank (SCB), Thailand's oldest bank, has introduced stablecoin-based remittance services in partnership with a fintech firm Lightnet. The service allows 24/7 cross-border transactions, to provide for lower fees and improve financial inclusion for users. Tested in the Bank of Thailand’s regulatory sandbox, the stablecoin service will benefit retail, corporate, and institutional clients, as it offers a cost-effective remittance alternative. Siam Commercial Bank has become the first Thai lender to embrace the commercialization of stablecoins.
Image Source: Siam Commercial Bankr
Thailand’s Siam Commercial Bank Launches Stablecoin Remittance Services
Siam Commercial Bank (SCB), the oldest bank in Thailand has launched a stablecoin-based remittance service, to pave the way for cheaper, faster cross-border payments. This development is facilitated through a collaboration with Lightnet Group, and it signals a transformation in how cross-border payments are handled, making transactions faster, cheaper, and available around the clock.
This development is a revolutionary leap in remittances because the traditional remittance industry has long faced challenges including high fees, long processing times, and a dependency on physical branches or intermediaries. With the stablecoin-based remittance, SCB aims to disrupt these pain points with its innovative service, which capitalizes on the benefits of blockchain technology.
Stablecoins are a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar. They have become the most acceptable solution for cross-border payments because they combine the security and decentralization of cryptocurrencies with the price stability of fiat currencies. SCB’s new service leverages this innovation to make remittance services more accessible and cost-effective, especially for the underserved sectors of the population. The reduced transaction fees on SCB's stablecoins remittance services will make stablecoins an attractive option for userswho seek to receive remittances from higher-value currencies.
SCB's collaboration with fintech firm, Lightnet Group which focuses on enabling efficient and secure cross-border payments across Asia is to levearage Lightnet’s blockchain infrastructure. This collaboration would enable the stablecoin remittance service to operate seamlessly, providing continuous transaction processing 24/7.
Speaking on the collaboration, Lightnet CEO, Tridbodi Arunanondchai highlighted the benefits of the tokenized fiat equivalents for all customers stating that SCB's Stablecoin Remittance Services is a high-value fintech product.
“This project also promotes financial inclusion as there is a lower capital requirement per transaction. Beyond this, the project also provides unique value propositions to retail, corporate, and institutional clients.”
Siam Commercial Bank’s adoption of stablecoins is part of a broader trend among traditional financial institutions looking to harness the power of blockchain technology. By becoming one of the first major banks in Southeast Asia to offer stablecoin remittance services, SCB is positioning itself as a leader in digital financial innovation. The move not only gives the bank a competitive edge in the remittance market but also supports Thailand’s growing reputation as a hub for fintech advancements.
SCB tested its new stablecoin services through the Bank of Thailand’s regulatory sandbox. With this development, Siam Commercial Bank has set a pace for the commercialization of stablecoins and we hope to see other banks in that region join.
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