Southeast Asia is one of the world’s fastest-growing regions and is home to some of the most rapidly developing economies. With this comes the demand for fast, cost-effective, and efficient payment and remittance systems.
Blockchain and digital assets are filling this void. 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 the regional leader in digital asset regulations, and this time, it’s targeting DAOs, a sector that has proven notoriously difficult to police for regulators in Europe and the U.S.
Thailand’s Siam launches cross-border stablecoin
Siam Commercial Bank, the fourth-largest lender in Thailand, recently announced the launch of its stablecoin, which will target cross-border payments and remittances.
The Bangkok-based bank partnered on the initiative with Lightnet, a fintech founded by Chatchaval Jiaravanon, the owner of Fortune Magazine and one of the country’s richest. The project, which graduated from a regulatory sandbox operated by the Thai central bank, also involved SCB 10X, Siam’s innovation arm.
In its announcement, the lender claimed that the stablecoin would rely on blockchain to enhance efficiency in cross-border transfers, a sector that has resisted digital transformation for decades and continues to be costly, inefficient, and slow. However, the bank withheld details about the blockchain on which it built the solution.
SCB promises lower costs and better capital efficiency with its dollar-pegged stablecoin, which it says will be available for transfers 24/7, yet another improvement over legacy solutions that are only available during banking hours.
“By leveraging blockchain technology and stablecoins, we are making cross-border remittances more efficient, reliable and accessible for everyone,” stated Thanawatn Kittisuwan, the head of digital payments at SCB.
Mukaya Panich, the CEO of SCB 10X, added that the stablecoin—custodied by Fireblocks—significantly “enhances the speed, efficiency and accessibility of international remittances” by leveraging blockchain.
Indeed, blockchain is a game-changer for cross-border transfers. Unlike traditional systems, blockchain-powered solutions, like Centbee’s, are instant, cheap, available 24/7, and secure.
However, not all blockchains are created equal, especially not for cross-border transfers. Only an enterprise network with unbounded scaling and whose fees don’t spike due to high usage, like BSV, can transform this sector, which hit $190 trillion in volume last year. With the Teranode upgrade in 2025, BSV will process over 100 billion transactions per day, making it a better solution than even the centralized options.
Singapore’s DBS launches tokenised banking services
Singapore’s largest bank has introduced a blockchain-based service that promises faster, cheaper, and more efficient transactions for its institutional clients. DBS Bank says the new DBS Token Services will offer its users instant payment settlement, available 24/7. The bank has deployed the service on its permissioned private network, which is compatible with Ethereum.
DBS joins dozens of financial institutions that have shunned public blockchains, claiming they don’t allow them to have as much control over their solutions, which is critical for banks. However, BSV allows developers to deploy overlay networks on top of the main network, which gives developers control while still leveraging the decentralization, security, and efficiency of the public network.
Lim Chong, who heads global transactions services at DBS, says the new token services are in response to the surge in demand for “a new generation of ‘always-on’ banking services.”
“It marks a significant step forward in transaction banking and demonstrates how established financial institutions can leverage blockchain technology to deliver new ground-breaking features and experiences,” he stated.
DBS Token Services offers several solutions, including Treasury Tokens, which enable users to deal in multiple currencies around the clock for streamlined liquidity management. Smart contracts also allow for conditional programmed payments that enable advanced automation.
UAE promises DAO laws
The UAE has made yet another stride toward becoming the ultimate digital asset hub in the Middle East. The country has the region’s most advanced legal framework, and it’s now extending the coverage to decentralized autonomous organizations (DAOs).
Ras Al Khaimah Digital Assets Oasis revealed that the new regulatory regime for DAOs will be introduced on Friday, October 25. The Oasis is a free economic zone in northern UAE that was established to nurture digital asset firms.
NeosLegal, a local law firm with expertise in the digital asset space, has partnered with the Oasis to develop the regime. Speaking to one media outlet, the firm’s partner, Irina Heaver, said that the framework aims to offer legal recognition and protection to DAOs.
It will also offer clarity on aspects such as tax obligations and the ownership of on-chain and off-chain assets by the DAO members. It will also extend to legal protection against personal liability for individual members.
DAO regulations have proven complex globally. In the U.S., the Commodity Futures Trading Commission (CFTC) made history in 2022 when it took action against Ooki DAO for breaching the Commodity Exchange Act. Despite great opposition from ‘Crypto Bros,’ the watchdog had its way, forcing the DAO to shut down and pay $643,000 in penalties.
Watch Middle East governments trying to find good use cases for blockchain: Ahmed Yousif
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Source: https://coingeek.com/thailand-first-stablecoin-uae-dao-regulations/