This Week In Crypto Asia: Thailand’s Oldest Bank Launches Stablecoin-Based Cross-Border Payments, Euroclear Invests In Singapore’s Marketnode

Stablecoins – digital currencies pegged to stable assets like the US dollar or gold – offer a promising alternative to traditional fiat currencies by providing stability and reducing volatility.

The introduction of stablecoin-based payments by SCB aims to address the longstanding challenges associated with cross-border transactions. 

Traditionally, these transactions involve multiple intermediaries, currency conversions, and time-consuming processes that can delay payments and increase costs. 

By leveraging stablecoins, SCB is able to streamline this process. It will allow for near-instantaneous transactions that are available 24/7.

#Ripple partner SCB is launching a stablecoin for enterprise xborder payments, remittance. They use Ripple for consumer remit, "EasyApp", but it's known they will use Lightnet at launch, Fireblocks for custody, suggesting Stellar. pic.twitter.com/XdpTIS6gR4

— WrathofKahneman (@Wkahnemanz) October 17, 2024

This initiative is particularly significant in the context of Southeast Asia, where cross-border trade is a critical component of economic activity. 

The use of stablecoins can facilitate smoother trade flows between countries in the region by reducing friction and enhancing efficiency. 

For retail customers, this means faster access to funds and lower transaction fees, making international payments more accessible and affordable.

Moreover, SCB’s move reflects a broader trend of financial institutions embracing digital currencies to enhance their service offerings. This development also positions SCB as a leader in financial innovation within Thailand and sets a precedent for other banks in the region to follow suit.

Explore: How Are Stablecoins Mitigating Economic Instability In Latin America, Specifically Brazil? Chainalysis Survey Reveals

Euroclear Invests In Singapore’s Marketnode For Blockchain Expansion

Euroclear, a prominent provider of post-trade services, announced its strategic investment in Marketnode, a Singapore-based blockchain platform. The company is looking to expand its blockchain capabilities. 

Marketnode focuses on utilizing blockchain technology to improve the efficiency and transparency of financial markets. 

By leveraging distributed ledger technology (DLT), Marketnode will streamline post-trade processes, reduce operational costs, and enhance security. And this aligns with Euroclear’s objectives to modernize its operations and provide more efficient solutions for its clients. The collaboration has the potential to drive significant innovation within the financial sector.

Euroclear eyes Asia’s blockchain potential with stake acquisition in Singapore’s Marketnode https://t.co/5bEcOBe6Iq

— The Block (@TheBlock__) October 18, 2024

Blockchain technology offers numerous advantages over traditional systems, including increased transparency, reduced settlement times, and improved data integrity. By integrating blockchain solutions into its core operations, Euroclear can offer more robust services that meet the demands of an increasingly digital economy.

Furthermore, this partnership highlights the growing interest among traditional financial institutions in adopting blockchain technology to remain competitive. As digital assets become more mainstream, there is a pressing need for established players like Euroclear to adapt to changing market dynamics and explore new business models. By investing in Marketnode, Euroclear is positioning itself at the forefront of this transformation, paving the way for broader adoption of blockchain technology across the industry.

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