Thailand’s SCB Pioneers Stablecoin Remittances After Regulatory Approval

Siam Commercial Bank (SCB), Thailand’s oldest commercial bank, has unveiled the country’s first stablecoin-based cross-border payment system following its successful graduation from the Bank of Thailand’s regulatory sandbox in October 2024. The initiative, developed in partnership with SCB’s innovation arm SCB 10X and Singapore-based fintech Lightnet, marks a significant milestone in Thailand’s financial technology landscape.

The new system leverages blockchain technology and stablecoins to facilitate 24/7 cross-border transactions, eliminating the traditional requirement for pre-funded nostro accounts between banking partners. This innovation promises to enhance capital efficiency while reducing operational costs for both the institution and its customers.

“By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable, and accessible for everyone,” said Thanawatn Kittisuwan, First Executive Vice President & Head of Digital Juristic & Payment at SCB.

The implementation incorporates custody technology from Fireblocks to ensure robust security for digital assets. Michael Shaulov, CEO and co-founder of Fireblocks, noted that the project “sets a new benchmark for the integration of stablecoins into mainstream banking services.”

A key feature of the system is its ability to process transactions in local currencies, simplifying the user experience for retail customers. According to Tridbodi Arunanondchai, Vice Chairman and Group CEO of Lightnet, the solution promotes financial inclusion by lowering capital requirements per transaction.

Following the successful launch for retail customers, SCB and Lightnet are planning to extend the service to corporate clients, aiming to revolutionize both inward and outward remittances for businesses engaged in international trade.