Thai bank SCB launches 24-hour stablecoin service to support cost-effective cross-border payments

The Siam Commercial Bank (SCB), Thailand's oldest bank, recently announced the launch of a 24-hour stablecoin trading service aimed at providing cross-border payments and reducing remittance costs. At the same time, the demand for stablecoins in developing countries is increasing, as it becomes a way to store value against local currency depreciation.

SCB Collaborates with Lightnet to Launch 24-Hour Stablecoin Remittance Service

SCB has partnered with fintech company Lightnet to introduce a stablecoin remittance service that enables users to conduct cross-border transactions 24 hours a day, reducing remittance costs. Lightnet aims to reduce the amount of funds required for each cross-border transaction through the stablecoin remittance service, attracting a wider range of customers, including retail businesses, enterprises, and large institutions. This service has undergone testing in the SCB regulatory sandbox to ensure compliance with relevant regulations and mitigate compliance risks.

Developing Countries Embrace Stablecoins as Value Stores

Due to the high volatility of currencies in developing countries, stablecoins pegged to the US dollar such as USDT and USDC have become the preferred choice for local residents. According to previous reports, stablecoins currently account for approximately 43% of the total cryptocurrency trading volume in Sub-Saharan Africa.

Countries like Venezuela, heavily reliant on oil as an economic lifeline, are gradually turning to USDT to mitigate the risk of having sales revenue frozen in foreign bank accounts due to US oil sanctions. Latin American countries like Brazil and Mexico now also have the option to use USDC for instant payments and transactions with foreign countries. Thailand, as one of the developing countries, is following the global trend in digital finance by adopting stablecoin services.