SCB First in Thailand to Launch Cross-Border Payment Using Stablecoins

Siam Commercial Bank (SCB), in collaboration with SCB 10X and Lightnet, has introduced Thailand's first cross-border payment system utilising stablecoins.

This innovative solution aims to modernize cross-border transactions by leveraging stablecoins and public blockchain technology, providing a streamlined, fast, and efficient payment process.

By using digital assets pegged to the US dollar or gold, SCB's system facilitates quicker and more cost-effective transactions, available 24/7, allowing clients to send and receive payments at their convenience—an improvement over traditional banking hours.

The platform also simplifies the conversion between local currencies and stablecoins, ensuring a seamless transaction experience.

Additionally, this initiative eliminates the need for pre-funded accounts between financial partners, enhancing capital utilisation and reducing costs.

This collaboration between SCB and Lightnet marks a significant advancement for Thailand's financial services industry.

Top-Tiered Security & Enhanced Efficiency

Security is a fundamental aspect of SCB's new payment solution, with Fireblocks providing essential custody services to safeguard digital assets.

By leveraging Fireblocks' advanced custody technology, SCB ensures robust protection for the assets involved in transactions, significantly minimising the risk of theft or loss.

Michael Shaulov, the CEO and Co-founder of Fireblocks, said:

“With the Fireblocks' secure custody technology, the cross-border transactions are not only faster and easier but also more secure.”

This enhanced security is crucial as the financial sector increasingly embraces digital assets, amid growing concerns over security breaches.

Launch of Sandbox to Enhance Crypto Innovation

This stablecoin remittance initiative is one of the first to successfully navigate the Bank of Thailand's (BOT) regulatory sandbox, which concluded in October 2024.

Overseen by the Thailand Securities and Exchange Commission (SEC), the sandbox allows financial institutions to explore innovative solutions, including those leveraging blockchain technology and digital assets.

Launched as part of a broader strategy to foster cryptocurrency and blockchain adoption, the SEC’s Digital Asset Regulatory Sandbox initiative enables financial firms to trial cryptocurrencies within a defined legal framework.

This approach was positively received during public consultations, highlighting its potential to drive financial innovation in Thailand's digital asset landscape.

The successful completion of SCB's stablecoin project within this regulatory framework indicates that it has undergone rigorous assessment and is now poised for commercial rollout.

This achievement not only advances blockchain technology adoption within traditional banking but also sets the stage for future innovations in the sector.

Expansion of Service

After the successful launch of their system for retail users, SCB and Lightnet are now gearing up to extend their services to corporate clients.

The objective is to provide businesses with the same benefits currently available to individual users, such as reduced transaction costs, expedited payments, and round-the-clock accessibility.

By removing pre-funding requirements and addressing operational inefficiencies, this initiative aims to enhance cash flow management for corporate clients, particularly those involved in international trade.

Ultimately, this expansion will offer companies a seamless and cost-effective solution for managing both inbound and outbound remittances.

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