Stacy Pereira
The tech investment arm of Siam Commercial Bank, SCB10X, is seeking regulatory approvals to allow Thai banks to hold cryptocurrencies on their balance sheets through their sandbox programme. The initiative highlights SCB10X’s strategic alignment with evolving blockchain technology, especially after their early investments in Ripple and stablecoins. This move could initiate significant changes in institutional cryptocurrency adoption in Thailand.
SCB10X has come to the forefront in bridging the gap between traditional finance and Web3 technologies. According to a report in Coin Push, banks that participate through the sandbox programs are expected to initially focus on corporate treasury management rather than retail services. SCB10X’s prototype involves using USDC for instant letter-of-credit settlements between Thai exporters and Malaysian buyers, reducing transaction times from days to minutes.
The new CEO of SCB10X, Kaweewut Temphuwapat, who took charge on May 16, is looking to bring in world-class cutting-edge technologies and drive innovation for the organization. Speaking at a recent event organised by the group, said that they were going in for more on AI plus crypto. “The intention is there… they allow us to do [it] on a small scale,” he added.
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Stakeholders anticipate that regulatory clarity will drive further integration of digital assets. Post SEC’s recognition of stablecoins such as the USDC and USDT in March, Thailand too is warming up to the idea of potential synergy with regulated stablecoins. This also marks a turning point for liquidity in Thailand’s crypto markets.
The introduction of stablecoins like THBX demonstrates a shift towards digital payments. This move aligns with global banking trends, potentially increasing institutional demand for assets like BTC. Historical data suggests similar initiatives enhance local liquidity and market trust.
