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Major Banks Pilot Successful Thailand-Singapore Blockchain Remittance

Last Updated March 4, 2021 5:07 PM
Samburaj Das
Last Updated March 4, 2021 5:07 PM

A joint effort by major banks in south-east Asia has led to a successful blockchain-powered cross-border funds transfer in real-time from Thailand to Singapore.

In an announcement  on Tuesday, Thailand’s Bank of Ayudhya – commonly referred to as Krungsri – revealed a successful pilot test involving an international remittance from a domestic bank account to a Standard Chartered account in Singapore using its own blockchain, dubbed the Krungsri Blockchain Ledger.

The endeavor involved major Japanese multinational Mitsubishi Corporation, independent group company and Japan’s largest bank MUFG – which operates independently, and Singapore-based banking giant Standard Chartered. Notably, the blockchain pilot was conducted under the guidelines of the Bank of Thailand’s regulatory sandbox.

In the pilot, the bank claims its blockchain enabled a transfer of funds from a Krungsri account belonging to a Thailand-based Mitsubishi subsidiary to the Standard Chartered account of a Singapore-based Mitsubishi subsidiary in “a matter of seconds.”

In a statement, Krungsri head of digital banking and innovation Thakorn Piyapan said:

“[T]he technology-based transaction helps enhance their subsidiaries’ financial liquidity toward greater flexibility and efficiency.”

Krungsri, a wholly-owned subsidiary of MUFG, is the latest Thai bank to successfully trial blockchain technology for remittance ahead of adoption. Nearly a year ago, Thailand’s Siam Commercial Bank (SCB) collaborated with Japan’s SBI Remit to launch a retail remittance bank service powered by Ripple’s blockchain tech. With nearly 50,000 Thai nationals living and working in Japan, the remittance corridor between the two countries sees approximately $250 million in transfers each year.

Featured image from Shutterstock.