SCB tie-up offers nation’s first stablecoin

Siam Commercial Bank (SCB) has partnered with Lightnet, a fintech company co-founded by Chatchaval Jiaravanon, to launch Thailand’s first stablecoin, which is a digital asset pegged to gold or the dollar for cross-border payments and remittances.
The initiative, which also involves SCB 10X, leverages blockchain technology to create a solution for cross-border transactions and marks a significant milestone in Thailand’s financial innovation.
The solution promises better capital efficiency and reduced operating costs, according to SCB. Local currencies can be used for transactions, with improved reliability and availability accessible 24/7, said the bank.
With the integration of Fireblocks’ custody technology, assets are secured at the back end, ensuring top-tier protection and trust between parties, according to a briefing.
Thanawatn Kittisuwan, first executive vice-president and head of digital juristic and payment at SCB, said the collaboration between SCB and Lightnet underscores a commitment to pioneering financial innovation and improving the remittance experience for users.
“By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable and accessible for everyone,” he said.
SCB 10X, the disruptive technology investment arm of SCB X Group, said the project is fully commercialised, showcasing the impact of fintech innovation in improving both the bank’s operations and customer experiences.
“By harnessing blockchain technology, the stablecoin-powered system significantly enhances the speed, efficiency and accessibility of international remittances,” said Mukaya Panich, chief executive and chief information officer of SCB 10X.
Tridbodi Arunanondchai, vice-chairman and group chief executive of Lightnet, said this project also promotes financial inclusion as there is a lower capital requirement per transaction.
“The service provides unique value propositions to retail, corporate and institutional clients, and it will strengthen Thailand’s position as Southeast Asia’s financial hub,” he said.
Michael Shaulov, chief executive and co-founder of Fireblocks, said its secure custody technology ensures cross-border transactions are not only faster and more efficient, but also meet the highest standards of security.
“We believe this project sets a new benchmark for the integration of stablecoins into mainstream banking services and look forward to seeing its impact on the way money moves across borders,” said Mr Shaulov.
SCB and Lightnet are planning to extend use cases to corporate customers, facilitating both inward and outward remittances.
“This expansion aims to provide businesses with the same benefits enjoyed by retail customers, further revolutionising cross-border financial transactions,” said Mr Thanawatn.