Photo credit: SCB TechX
SCB TechX, Siam Commercial Bank’s tech innovation unit, has completed a stablecoin remittance pilot on the Hedera network together with South Korea-based Shinhan Bank and an unnamed financial institution in Taiwan.
The pilot demonstrated real-time settlement and foreign exchange rate integration for the Thai baht, New Taiwan dollar, and South Korean won. It aims to make cross-border payments more efficient and low-cost, the three companies said in a joint statement.
According to Shinhan Bank, customers often have to shell out an additional US$20 to US$80 for intermediary bank fees for cross-border transfers. Transactions can also take between three and seven days to complete, with customers lacking visibility and tracking options during the process.
“Stablecoins offer a low-cost, fast, and reliable way to transfer value across borders, which can help to increase financial inclusion and improve access to financial services for individuals and businesses in underserved communities,” said Byunghee Kim, chief of blockchain division at Shinhan Bank.
See also: Will deposit tokens put stablecoin issuers out of business?
Editing by Miguel Cordon and Lorenzo Kyle Subido
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