Top Thai Bank Launches 24/7 Stablecoin Remittance Services

Siam Commercial Bank (SCB), Thailand's oldest bank, is set to launch stablecoin-based cross-border payment and remittance services in partnership with fintech company Lightnet.

This service will enable 24/7 transactions while lowering costs, making it appealing for recipients of higher-value currencies.

Lightnet’s CEO emphasized that this initiative promotes financial inclusion by reducing capital requirements for transactions and offering distinct benefits to various customer segments.

The bank’s services were tested in the Bank of Thailand’s regulatory sandbox, which allows for the experimentation of digital assets under relaxed regulations.

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In emerging markets, US dollar-backed stablecoins are becoming popular for preserving value against weakening local currencies. A report from Chainalysis indicates that stablecoins now represent about 43% of crypto transaction volumes in Sub-Saharan Africa, and in Venezuela, stablecoins made up over half of digital asset remittances in 2023.

Mastercard’s recent findings show that remittances to South America are growing rapidly, predicting that stablecoins will continue to expand their influence in the digital economy.

Alexander Stefanov