Thailand's oldest financial institution, Siam Commercial Bank (SCB), has announced a groundbreaking move to offer stablecoin-based remittance services. This collaboration with fintech company Lightnet aims to provide clients with 24/7 cross-border transactions while significantly lowering fees. The service will benefit those who regularly send or receive remittances from higher-value currencies, making it an attractive option for both individuals and businesses.

Lightnet’s CEO, Tridbodi Arunanondchai, emphasized that this stablecoin initiative promotes financial inclusion by reducing capital requirements for each transaction. He also noted that the service provides unique value to retail, corporate, and institutional clients alike.

SCB's new stablecoin services were rigorously tested through the Bank of Thailand's regulatory sandbox, allowing the bank to experiment with digital assets without regulatory risks.

This initiative aligns with the broader global trend of using U.S. dollar-pegged stablecoins as a store of value in developing nations. As local currencies depreciate, people increasingly turn to stablecoins to preserve purchasing power. A recent Chainalysis report revealed that stablecoins now represent 43% of all crypto transactions in Sub-Saharan Africa, with similar trends in Latin America.

In 2023, stablecoins accounted for over 50% of digital assets sent as remittances to Venezuela, where currency devaluation is rampant. This trend is also growing in countries like Argentina, Brazil, and Mexico.

According to Mastercard’s March 2024 report, remittances to South America are growing faster than anywhere else globally, with stablecoins predicted to further drive this shift toward a digital economy.