Siam Commercial Bank (SCB), Thailand’s fourth-largest and oldest lender, has launched the country’s first stablecoin-powered cross-border payment system, according to according to a company release. In partnership with fintech firm Lightnet, SCB’s new service aims to lower transaction costs and provide faster international transfers.
“The collaboration between SCB and Lightnet underscores a commitment to pioneering financial innovation and improving the remittance experience for users. By integrating blockchain technology, the project promises a more efficient, reliable, and accessible solution for cross-border transactions,” said Thanawatn Kittisuwan, First Executive Vice President & Head of Digital Juristic & Payment at SCB.
This solution is built on a public blockchain network, with Fireblocks providing top-tier custody technology to ensure asset security. The new stablecoin remittance solution will allow SCB customers to send and receive payments worldwide 24/7. Tested within the Bank of Thailand’s digital assets sandbox, the system meets regulatory requirements and is designed for future expansion.
This move highlights SCB’s consistent commitment to leveraging cutting-edge technology to enhance financial services. “By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable, and accessible for everyone,” added Kittisuwan.
The adoption of stablecoin payments further showcases SCB’s role as a key player in the future of financial services, aligning with broader trends in blockchain technology reshaping global finance, especially in regions where traditional banking systems struggle to meet the needs of the population.
Lightnet’s Vice Chairman and Group CEO, Tridbodi Arunanondchai, emphasized the significance of the collaboration, stating, “This solution will provide significant improvements to customers’ experience in cross-border money transfer, lowering transaction time and cost while being accessible 24/7. This project promotes financial inclusion as there is a lower capital requirement per transaction.”
Stablecoin Adoption on the Rise
Chainalysis’ latest global adoption report highlights the growing significance of stablecoins for cross-border payments, particularly in regions with unstable currencies or high remittance costs. Stablecoins are increasingly utilized in countries like Brazil, Nigeria, and India, where traditional banking services often fall short.
In Sub-Saharan Africa, stablecoins account for 43% of all crypto transactions, playing a crucial role in remittances and trade. Nigeria, in particular, has become the second-largest adopter of crypto globally, with stablecoins offering a stable alternative to volatile local currencies.
Interestingly, both Saudi Arabia and the UAE are shifting towards stablecoins as their preferred asset class. In Saudi Arabia, stablecoins accounted for 46.1% of the total crypto value received, while in the UAE, they accounted for 51.3% — both higher than the global average of 44.7%. This marks stablecoins as a popular choice for those seeking price stability and as an entry point into the broader crypto ecosystem.
Recent developments in the UAE also underscore this trend, as AED Stablecoin LLC has announced it received in-principal approval from the Central Bank of the UAE to launch its own currency, AE Coin. This initiative reflects the UAE government’s innovative vision and commitment to the Digital Government Strategy 2025 and paves the way for AED Stablecoin to become the first entity in the UAE to issue AED-backed stablecoins.
The growing role of stablecoins in financial inclusion is not without its challenges. Some experts have raised concerns about “crypto-dollarization” in certain regions, where the widespread use of stablecoins could weaken local monetary policies.
Nevertheless, the Chainalysis report noted that over 70% of respondents expect to increase their stablecoin usage over the next year, driven by their efficiency, speed, and accessibility in cross-border payments, payroll, and remittances.
