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Thailand’s continuous cross-border payments are faster and more secure than ever. With SCB’s stablecoin system, real-time and cross-border payments for various currencies are enhanced by faster and more affordable options for remittances. Fireblocks makes SCB’s stablecoin remittance offering even more secure while also being the best. Sec, the sandbox of Thailand’s SEC will further enhance SCB’s blockchain proposition and open up corporate growth.
Thai’s Siam Commercial Bank (SCB) and SCB 10X partnered for Thailand’s first cross-border payment that used stablecoins. The new solution co-developed with Lightnet is to achieve a more convenient and faster cross-border payment using both stablecoins and public blockchain.
Thailand Bank SCB Unveils New Stablecoin Remittance
Through a press release sent to CoinGape, SCB has said that this new innovation of theirs of moving cross-border payments into a new age. To realize the goal of the system, cross-border payments are faster, efficient, and cheaper through the application of stablecoins which are a cryptocurrency that is anchored to the United States dollar or gold.
It is an around-the-clock service – there is no specific time when the company’s clients can either transfer or receive payments which also adds to the flexibility in comparison with banking companies’ working hours. The fact that the users can transact using local currencies, the transition from the digital asset to the local currency or from the local currency to the asset is made easy by the stablecoin system.
This also does away with the need for pre-funded accounts between financial partners, thereby improving capital effectiveness at the same time as reducing costs. The current system is a new innovation for the financial services industry in Thailand due to the partnership between SCB and Lightnet.
Fireblocks Security of Cross-Border Transactions
One important aspect of this new payment solution is security and Fireblocks provide the needed custody solutions to manage the security of the digital assets. By adopting Fireblocks’ custody technology, SCB is confident of the security of the underlying assets as well as low likelihood of the assets being defalcated. Michael Shaulov, the CEO, and Co-founder of Fireblocks said this, The added layer of protection is significant just as the financial industries are faster integrating the usage of digital assets and security breaches remain on the rise.
Thailand SEC Launches Sandbox to Boost Crypto Innovation
This stablecoin remittance project is among the first to successfully go through all the requirements set by the Bank of Thailand (BOT) in its regulatory Sandbox which concluded in October 2024. The sandbox, supervised by the Thailand Securities and Exchange Commission, gives financial institutions a chance to test new financial creations solutions and products that are based on technologies like blockchain and digital assets.
Thai regulators unveiled the Sandbox as part of their broader strategy to actively encourage the use of cryptocurrency and blockchain in Thailand. For instance, the SEC’s Digital Asset Regulatory Sandbox begun in 2024 which permits financial firms to trial cryptocurrencies within a legal tolerance level. This was welcomed warmly during the public hearing and has brought about new opportunities for raising money within Thailand’s digital asset space.
The ideas of SCB’s stablecoin project regarding the sandboxing process mean that the system is fully regulated and fit for the commercial market. There is also clarity created by this milestone towards the application of blockchain technology to the conventional banking system.
Plans for Corporate Expansion
Now that the system has been launched for retail customers, it’s time for SCB and Lightnet to start offering it to companies. The idea is aimed at providing the same useful effects for businesses at the moment, which is accessible to individual customers: reduced transaction costs, faster payments, and round-the-clock availability.
Removing pre-funding conditions and other operational problems will free up cash flow in carrying out operations for corporate clients, particularly trading houses. When implemented it gives business houses an efficient channel and an economical means of carrying out both incoming and outgoing remitting.