Major Banks Pioneer the Thailand-Singapore Blockchain Remittance Flow
The combined effort by southeast Asian major banks resulted in a successful blockchain based cross-border funds transfer in real time from Thailand to Singapore.
On May 22nd, Thailand’s fifth largest bank by total assets, Ayudhya (Krungsri), in the framework of the successful pilot test, initiated an international remittance transfer from a domestic bank account to a Standard Chartered account in Singapore. This transaction has been executed through the bank’s own Krungsri Blockchain Ledger.
The transaction was executed among Mitsubishi Corporation (one of the largest Japanese MNE Corporation), Japanese largest bank MUFG and Singaporean banking giant Standard Chartered. Notably, the blockchain pilot transaction of international remittance from Thailand to Singapore was executed following the instructions provided by the Bank of Thailand’s regulatory sandbox and used Krungsri Blockchain Interledger.
Referring to the pilot transaction results, the bank claims its blockchain technology enabled successful 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.”
According to Krungsri head of digital banking and innovation, Thakorn Piyapan:
“The technology-based transaction helps enhance their subsidiaries’ financial liquidity management efficiency and reduce their cost management.”
Krungsri, a fully-owned subsidiary of MUFG, is the latest Thai bank to successfully test the blockchain technology for remittance transfers ahead of adoption. Around a year ago, Thailand’s Siam Commercial Bank (SCB) in cooperation with Japan’s SBI Remit launched a retail remittance bank service powered by Ripple’s blockchain technology. Given the fact there are 50,000 Thai nationals living and working in Japan, the remittance flows between the two countries have a total value of around $250 million in annual transfers.
In September 2017, Krungsri had already implemented its Blockchain Interledger for Thailand’s first real-time cross-border funds transfer. The monetary transaction was executed between Thai petroleum firm IRPC and its overseas trading partners.