Thailand-based SCB has introduced a stablecoin-based solution for cross-border payments, following the completion of a regulatory sandbox trial. The initiative was carried out in collaboration with SCB 10X, the bank’s venture and innovation arm, and Singapore-based fintech firm Lightnet.

Fireblocks, a digital asset custody provider, is responsible for the custody technology. At the time of writing, no response was received regarding the specific blockchain or stablecoins used in the project. Typically, cross-border payments require banks to maintain pre-funded Nostro accounts in the recipient's country.

According to ledgerinsights.com, the use of stablecoins could potentially eliminate this requirement, as stablecoin transactions are cost-effective and can be conducted around the clock. SCB officials noted that the bank aims to improve the efficiency, reliability, and accessibility of cross-border remittances through the use of blockchain technology and stablecoins. Expansion to corporate clients While the solution initially targets individual consumers, SCB has plans to extend the offering to corporate clients.

Meanwhile, in Japan, the country’s three largest banks are also exploring similar cross-border payment systems, although they do not disclose the use of stablecoins. Instead, clients process payments through traditional banking channels. Additionally, SCB Tech X participated in a stablecoin trial using Hedera’s distributed ledger technology (DLT).

The trial included banks from Korea, Taiwan, and South Africa. Other developments from SCB In July 2024, Siam Commercial Bank partnered with Sunline with the aim to revamp IT architecture for SCB's core banking system modernisation. The partnership also aimed to deliver better financial transaction processing performance for deposits and loans with enhanced efficiency, stability, security, and scalability to cater to an ever-increasing number of transactions.

Furthermore, the partnership allowed SCB to offer customised financial solutions to individual customers and corporate clients. The development of the new core banking system was expected to take four years, moving towards SCB leadership as a full-fledged digital banking entity. Source: Link .