Thailand's largest commercial bank completes blockchain B2B cross-border remittance, shortening settlement time from 1 day to 1 minute

According to foreign media reports, Siam Commercial Bank (SCB), Thailand's largest commercial bank, announced that it has successfully tested the use of blockchain in cross-border B2B payments with state-owned oil companies PTT Exploration and Production Public Company Limited (PTTEP). .

The bank recently announced on its website that the pilot was a success.

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Image source: pixabay

According to the announcement, the project has been in progress since mid-2018 to optimize operational efficiency. The bank claimed that it had successfully completed payments through the blockchain in less than a minute earlier this year.

The bulletin also pointed out that if the traditional method is used, it will take one to two days to resolve. SCB SEVP and Wholesale Bank CEO Wasin Saiyawan stated that the bank is now ready to “set a new standard for the industry” and announced:

“This service will be implemented in all Cambodia, Myanmar and Myanmar and Southeast Asian countries this year, which will be an important milestone in the development of cross-border payment services.”

Sumrid Sumneing, executive vice president of PTTEP Finance and Accounting Group, also pointed out that the use of blockchain technology in cooperation with SCB will continue. Although the statement did not mention Ripple or XRP, it is reported that the company is part of the Rippleet payment network.

In addition, Ripple announced in September last year that the bank was an early adopter of the Rippleet Muti-hop feature. According to reports, Multi-hop allows settlement payments on behalf of other financial institutions on the network.

Crunchbase defines SCB as the first local bank in Thailand and points out that as of June 30, 2016, it is the largest commercial bank in Thailand with an estimated annual revenue of $2.9 billion. Crunchbase also estimates that PTTEP's parent company, PTT, has an annual income of $60.5 billion.

Recently, Emmanuel Aidoo, head of digital market assets at Credit Suisse, said that the desire of financial institutions to maintain the status quo has hindered the adoption of blockchain technology.