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Singapore Gulf Bank adds stablecoin mint and redeem for 24/7 settlement
TL;DR
Singapore Gulf Bank has launched a service for institutional clients to mint and redeem stablecoins directly from their accounts, utilizing the Solana blockchain for 24/7 settlement. Initially supporting Circle USDC transactions over $100,000, the service includes temporary fee waivers.
Key points
- Singapore Gulf Bank introduces stablecoin mint and redeem service
- Service uses Solana blockchain for 24/7 settlement
- Initial support for Circle USDC transactions above $100,000
- Temporary fee waivers for minting and redemption
- Integration with bank's internal clearing system
Mentioned in this story
Singapore Gulf Bank
SolanaCircle USDCTether USDTEthena USDe
Singapore Gulf Bank (SGB) has introduced a service that lets institutional clients mint and redeem stablecoins directly from their bank accounts, using the Solana layer-1 blockchain network to enable round-the-clock settlement between fiat and digital assets.
The service will initially support Circle USDC (USDC) transactions above $100,000 and includes temporary fee waivers for minting and redemption on the Solana network, according to SGB’s announcement.
Additional assets such as Tether’s USDT (USDT), Ethena’s USDe (USDe) and Global Dollar (USDG) are expected to follow, the company said.
The new feature is integrated into the bank’s internal clearing system, allowing funds to move between onchain and traditional balances without relying on intermediary banking networks, SGB said.
The launch comes as payment networks, regulators and banks around the world move to integrate stablecoin settlement and blockchain infrastructure into the traditional financial system to reduce costs and settlement times.
Related: Related:Euro stablecoins dominate non-dollar market, Visa-backed report finds
Banks, payment networks and regulators push stablecoin integration
In March, Mastercard agreed to acquire stablecoin infrastructure company BVNK in a deal valued at up to $1.8 billion.
Jorn Lambert, Mastercard’s chief product officer, said “most financial institutions and fintechs” are moving toward services built around stablecoins and tokenized deposits.
Separately, Visa began operating validator nodes on the Tempo network on Tuesday. Validators on the network can earn stablecoin-based rewards for processing transactions.
A Visa spokesperson told Cointelegraph the company is focused on the technical and strategic aspects of operating a validator, rather than generating revenue.
Regulatory frameworks around the world are also beginning to catch up. In April, Pakistan’s central bank allowed banks to serve licensed crypto firms, ending years of legal restrictions.
Q&A
What stablecoins can be minted and redeemed at Singapore Gulf Bank?
Initially, the service supports Circle USDC, with plans to include Tether's USDT, Ethena's USDe, and Global Dollar.
How does Singapore Gulf Bank's stablecoin service work?
The service allows institutional clients to mint and redeem stablecoins directly from their bank accounts, integrating with the bank's internal clearing system for seamless transactions.
What is the minimum transaction amount for stablecoin minting at Singapore Gulf Bank?
The service requires a minimum transaction amount of $100,000 for minting and redeeming stablecoins.
