Key Insights

• SCB’s new stablecoin platform offers 24/7 cross-border payments, improving flexibility and cutting transaction costs.
• Fireblocks’ custody technology secures SCB’s stablecoin transactions, ensuring safe and efficient digital remittances.
• SCB’s remittance solution, developed with Lightnet, completes regulatory sandbox, ready for retail and corporate expansion.

Siam Commercial Bank (SCB), one of Thailand’s leading financial institutions, has introduced a new cross-border payment solution using stablecoins. This innovative system, developed in collaboration with SCB’s venture arm SCB 10X and financial technology partner Lightnet, enables faster and more efficient international remittances. 

By leveraging stablecoins—digital assets typically pegged to stable currencies like the U.S. dollar—SCB aims to modernize the cross-border payments landscape in Thailand, offering greater convenience, security, and cost-effectiveness.

Streamlining Cross-Border Payments with Stablecoins

SCB’s stablecoin solution allows users to send and receive cross-border payments at any time, enhancing flexibility beyond the constraints of traditional banking hours. Transactions can be made 24/7, which is a significant improvement over the time restrictions typically imposed by traditional financial institutions. 

Users can send payments in their local currency, and the system seamlessly converts stablecoins into the recipient’s local currency, simplifying the process for individuals and businesses alike.

The new system eliminates the need for pre-funded accounts between financial institutions, improving capital utilization while reducing operational expenses. This approach is expected to provide a more efficient alternative for cross-border remittances, which have traditionally been associated with high costs and lengthy processing times. This marks a substantial step forward in financial services in Thailand, especially with SCB’s partnership with Lightnet driving the development of this blockchain-based solution.

Enhanced Security with Fireblocks Technology

Security remains a critical aspect of any digital payment system, and SCB has integrated Fireblocks’ advanced custody technology to safeguard digital assets within its stablecoin platform. Fireblocks, a recognized leader in secure digital asset storage, provides an additional layer of protection to ensure the safety of assets during cross-border transactions.

Michael Shaulov, CEO and Co-founder of Fireblocks, noted that their custody solutions enhance both the speed and security of transactions. This is a key factor as the financial industry increasingly adopts blockchain-based solutions. 

With cybersecurity threats on the rise, robust security measures are essential for building trust and confidence in the use of digital assets, especially for international remittances. SCB’s partnership with Fireblocks demonstrates a strong commitment to maintaining the security of digital transactions for both individual and corporate users.

Regulatory Approval and Sandbox Completion

The development of SCB’s stablecoin remittance system follows its successful completion of Thailand’s regulatory sandbox, which is overseen by the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC). The sandbox allows financial institutions to test new technologies, including blockchain and digital assets, in a controlled and regulated environment.

SCB’s participation in this initiative is part of a broader effort by Thai regulators to promote the adoption of cryptocurrency and blockchain technology within the country. The SEC launched its Digital Asset Regulatory Sandbox in early 2024, providing a legal framework for firms to trial blockchain-based solutions. 

With SCB’s stablecoin project now exiting the sandbox phase, the bank is ready to introduce its remittance system to the commercial market, signaling growing acceptance of blockchain technology in Thailand’s banking sector.

Expansion Plans for Corporate Clients

Following the system’s rollout for retail users, SCB and Lightnet plan to extend the service to corporate clients. The goal is to provide businesses with the same benefits currently enjoyed by individual customers, such as lower transaction costs, faster processing times, and around-the-clock availability.

For corporate clients engaged in international trade, the stablecoin remittance solution could help streamline cash flow management by eliminating the need for pre-funded accounts and reducing operational inefficiencies. This new system is expected to offer businesses a seamless, cost-effective solution for managing inbound and outbound payments, helping to improve overall financial performance for companies operating in global markets.