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 remittance services, Nikkei Asia reported on Oct. 16.
The stablecoin remittance service will be offered in collaboration with fintech firm Lightnet. The move aims to reduce transaction fees and provide faster international transfers for its clients.
The introduction of stablecoin-based services will allow SCB customers to send and receive payments globally 24 hours a day, seven days a week. The service was trialed through the Bank of Thailand’s digital assets 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, particularly in regions where traditional banking systems struggle to meet the needs of their populations.
This move is expected to further the development of Thailand’s digital economy, positioning SCB as a key player in the future of financial services.
Stabelcoin adoption surge
According to Chainalysis’ latest global adoption report, stablecoins have become a critical tool for cross-border payments, particularly in regions with unstable currencies or high remittance costs. They are increasingly used in countries like 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, playing a vital role in remittances and trade. Nigeria, in particular, has emerged as the second-largest adopter of crypto globally, with stablecoins offering a lifeline to those seeking a stable alternative to local currencies.
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 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.