KEY POINTS
- The stablecoin transfer solution for cross-border settlements will be available 24/7
- SCB said the initiative further demonstrates the bank's commitment to leveraging cutting-edge technology
- Fireblocks noted how the project exemplifies the transformative power of blockchain in banking
Thailand's first commercial bank, Siam Commercial Bank (SCB), in partnership with SCB 10X, on Wednesday announced a collaboration with fintech firm Lightnet to integrate stablecoin settlement on the public blockchain network, enhancing cross-border payments and remittances.
The project marks the first time Thailand is using stablecoins for cross-border transactions and remittances, setting a new standard in the country's financial services industry.
Toward Revolutionizing Thailand's Financial Development
SCB's stablecoin project completed the Bank of Thailand's (BOT) regulatory sandbox this month, allowing it to become fully commercialized and offering a revolutionary solution for cross-border transactions.
The project also marks a significant leap in Thailand's financial innovation and engagement in blockchain technology, as the project will integrate blockchain enterprise-grade platform Fireblocks' custody technology to ensure that assets are secure at the back end and trust between the parties is founded on solid ground.
Benefits of the Stablecoin Solution
The stablecoin cross-border solution offers numerous benefits for users, including improved capital efficiency. The high-end technology around stablecoins and the efficiency of blockchain transactions enhance fund management by eliminating pre-funding between partners.
International transactions are usually costly for service providers and consumers alike. With the high-end technology around stablecoins and the efficiency of blockchain transactions, operational costs can be reduced.
Consumers can make use of local currencies in their transactions, with 24/7 service accessibility to ensure reliable settlements.
Pioneering Thailand's Financial Revolution
SCB takes pride in pioneering the country's financial innovation through its partnership with Lightnet. The bank believes that integrating blockchain technology will provide Thai citizens with a more efficient solution for their international transactions.
"SCB has a long-standing tradition of embracing innovative technologies to enhance our financial services. This latest collaboration with Lightnet and Fireblocks builds upon SCB's history of pioneering fintech solutions. SCB's consistent commitment to leveraging cutting-edge technology demonstrates our dedication to providing efficient, accessible financial services to our customers," Thanawatn Kittisuwan, the first executive vice president and head of Digital Juristic & Payment at SCB, said in a press statement shared with International Business Times.
Highlighting Real-World Impact of Fintech Innovation
For SCB 10X, the investment arm of SCBX Group that primarily focuses on disruptive technology, the project will not only help drive fintech adoption, but it also showcases how fintech innovation has significant impacts in the real world.
"We are proud to have played a pivotal role in moving this initiative forward, coordinating efforts across teams to bring this transformative solution to life. We are thrilled about its potential to improve the efficiency of cross-border finance," said Mukaya (Tai) Panich, CIO and CEO of SBC 10X.
Delivering the Next-Gen Financial Network
Lightnet expressed commitment toward developing the "next generation universal financial network" to resolve various financial pain points for customers not just in Thailand but also around the world.
Vice Chairman and Group CEO of Lightnet Tridbodi Arunanondchai noted how the stablecoin solution encourages financial inclusion as it has low capital requirements for each transaction.
"We believe that the launch of this revolutionary cross-border payments and remittance solution is the first step" toward providing businesses and individuals with financial access, mobility and efficiency, he said.
Demonstrating the Power of Blockchain in Banking
Fireblocks has been providing secure blockchain infrastructure since 2018. It has been expanding partnerships in the global stage in recent years and in July, it announced the first five entities in its Global Custodian Partner Program.
The initiative with SCB and Lightnet is another step forward in its efforts toward demonstrating the transformative power of blockchain technology in the banking sector.
The project "showcases how financial institutions can leverage cutting-edge technology and a robust digital asset infrastructure to innovate and improve their services," said Michael Shaulov, CEO and co-founder of Fireblocks.
"We believe this project sets a new benchmark for the integration of stablecoins into mainstream banking services and look forward to seeing its impact on the way money moves across borders," he added.
