Southeast Asia is one of the fastest growing regions in the world and home to some of the fastest developing economies. This is driving the demand for fast, cost-effective and efficient payment and remittance systems.
Blockchain and digital assets are filling this gap. In Thailand, one of the largest banks introduced the country’s first stablecoin for cross-border payments and remittances, while in Singapore, banking giant DBS (NASDAQ: DBSDY) introduced real-time blockchain payment settlements for institutions.
The UAE has been a regional leader in digital asset regulation and this time it is targeting DAOs, an area that has been extremely difficult for European and US regulators to crack down on.
Siam, Thailand launches cross-border stablecoin
Siam Commercial Bank, Thailand’s fourth-largest lender, recently announced the launch of a stablecoin aimed at cross-border payments and remittances.
The Bangkok-based bank has partnered with Lightnet, a fintech company founded by Chatchaval Jiaravanon, owner of Fortune Magazine and one of the country’s richest men, to pursue the initiative. The project, which graduated from a regulatory sandbox run by the Bank of Thailand, also involved Siam’s innovation arm, SCB 10X.
In the announcement, the lender claimed that the stablecoin would increase the efficiency of cross-border transfers using blockchain. This is a sector that has been resistant to digital transformation for decades and continues to be costly, inefficient and slow. However, the bank did not disclose details about the blockchain on which the solution was built.
SCB promises to reduce costs and improve capital efficiency through its dollar-pegged stablecoin. This coin allows money transfers 24/7, providing another improvement over legacy solutions that are only available during banking hours.
“We are leveraging blockchain technology and stablecoins to make cross-border remittances more efficient, reliable and accessible for everyone,” said Thanawatn Kittisuwan, head of digital payments at SCB.
Mukaya Panich, CEO of SCB 10X, added that the stablecoin managed by Fireblocks leverages blockchain to “significantly improve the speed, efficiency and accessibility of international money transfers.”
In fact, blockchain is a game-changing technology for cross-border transfers. Unlike traditional systems, blockchain-based solutions like Centbee are instant, affordable, available 24/7, and secure.
However, not all blockchains are created equal, especially when it comes to cross-border transfers. Only an enterprise network that can scale indefinitely and doesn’t spike fees due to high usage like BSV can transform this sector, which reached $19 trillion last year. With the Teranode upgrade in 2025, BSV will process over 100 billion transactions per day, making it a better solution than centralized options.
Singapore DBS launches tokenized banking service
Singapore’s largest bank has introduced a blockchain-based service that promises faster, cheaper and more efficient transactions for institutional clients. DBS Bank said its new DBS token service will provide users with instant payment settlements 24/7. The bank deployed its services on a permissioned private network compatible with Ethereum.
DBS joins dozens of financial institutions in shunning public blockchains, arguing that they do not allow banks control over a critically important solution. However, BSV allows developers to deploy an overlay network on top of the main network, giving developers control while leveraging the decentralization, security, and efficiency of the public network.
Lim Chong, head of global transaction services at DBS, said the new token service was aimed at responding to surging demand for “‘always-on’ next-generation banking services”.
“This represents a significant step forward in transaction banking and demonstrates how traditional financial institutions can leverage blockchain technology to deliver new, groundbreaking features and experiences,” he said.
DBS Token Services offers several solutions, including Treasury Tokens, which allows users to trade multiple currencies around the clock for efficient liquidity management. Smart contracts also allow for conditional programmatic payments, enabling advanced automation.
UAE commits to DAO law
The UAE has taken another step forward in becoming the Middle East’s leading digital asset hub. The country has one of the most developed legal frameworks in the region and is now extending its coverage to decentralized autonomous organizations (DAOs).
Ras Al Khaimah Digital Assets Oasis has revealed that a new regulatory framework for DAOs will be introduced on Friday 25 October. Oasis is a free economic zone in the northern UAE established to foster digital asset companies.
NeosLegal, a local law firm with expertise in the digital assets sector, has partnered with Oasis to develop the scheme. In an interview with a media outlet, Irina Heaver, a partner at the firm, said that the framework aims to provide legal recognition and protection for DAOs.
It will also provide clarity on aspects such as DAO members’ tax obligations and ownership of on-chain and off-chain assets. It would also expand legal protection for individual members’ personal liability.
DAO regulations have proven complex globally. In the United States, the Commodity Futures Trading Commission (CFTC) made history by taking action against Ooki DAO for violating the Commodity Exchange Act of 2022. Despite loud opposition from the ‘Crypto Bros’, the watchdog got its way and shut down the DAO and forced it to pay a $643,000 fine.
Watch Middle Eastern governments trying to find good use cases for blockchain: Ahmed Yousif
title=”YouTube video player”frameborder=”0″allow=”Accelerometer; Autoplay; Write clipboard; Encrypted media; Gyroscope; Picture in picture; Web sharing” Referrerpolicy=”strict-origin-when-cross- origin “Allow Full Screen>