Siam Commercial Bank (SCB), Thailand’s fourth largest and oldest lender, has become the first financial institution in the country to offer stablecoin-based cross-border payments and money transfer services, Nikkei Asia reported on October 16.
The stablecoin transfer service will be offered in partnership with fintech company Lightnet. The move aims to reduce transaction costs and provide faster international transfers for its customers.
The introduction of stablecoin-based services will allow SCB customers to send and receive payments worldwide 24 hours a day, seven days a week. The service was tested through the Bank of Thailand’s digital asset sandbox to ensure the system meets regulatory standards and has the flexibility for future expansion.
SCB’s adoption of stablecoin payments highlights the growing importance of blockchain technology in reshaping global finance, especially in regions where traditional banking systems struggle to meet the needs of their populations.
This move is expected to promote the development of Thailand’s digital economy, making SCB a key player in the future of financial services.
Increased adoption of Stafelco
According to Chainalysis’ latest global adoption report, stablecoins have become a crucial tool for cross-border payments, especially in regions with unstable currencies or high transfer fees. They are increasingly used in countries such as Brazil, Nigeria and India, where traditional banking systems often fail to meet the needs of the population.
In Sub-Saharan Africa, stablecoins now account for 43% of all crypto transactions and play a crucial role in money transfers and trading. Nigeria in particular has emerged as the second largest user of crypto in the world, with stablecoins offering a lifeline to those looking for a stable alternative to local currencies.
The growing role of stablecoins in financial inclusion is not without challenges. Some experts have raised concerns about “crypto-dollarization” in certain regions, where the widespread use of stablecoins could weaken local monetary policy.
Nevertheless, the report noted that more than 70% of respondents expect to increase the use of stablecoins in the coming year, driven by their efficiency, speed and accessibility in cross-border payments, payroll and remittances.