Siam Commercial Bank (SCB), alongside its venture arm SCB 10X and Lightnet, has launched Thailand’s first cross-border payment system utilising stablecoins, according to CoinGape.
The project focuses on enhancing transaction speed and efficiency through the integration of blockchain and stablecoins, digital currencies tied to assets such as the U.S. dollar.
The system operates 24/7, offering greater flexibility for users compared to conventional banking hours, especially for those conducting international transactions.
The use of stablecoins also streamlines currency conversion processes, facilitating easier transfers between digital and local currencies.
By eliminating the requirement for pre-funded accounts between banks, the solution could improve capital efficiency and reduce transaction costs.
Fireblocks, a digital asset security firm, provides the custody technology to secure digital assets during these transactions.
The system successfully completed testing in Thailand’s regulatory sandbox, overseen by the Bank of Thailand and the SEC, before its commercial use.
SCB and Lightnet plan to roll out this service for corporate clients, aiming to offer businesses engaged in international trade faster payment processing and reduced costs for cross-border transfers.
Featured image credit: Edited from Freepik
