Thai Bank Pilots Cross-Border Transaction Using Blockchain
Thailand’s Bank of Ayudhya PCL successfully conducted a cross-border transaction with a bank in Singapore using a blockchain, it announced Tuesday.
The bank, also known as Krungsri, said it committed a real-time international remittance in concert with MUFG Bank, Mitsubishi Corporation and Standard Chartered Bank (Singapore) using the Krungsri Blockchain Interledger. Specifically, the bank used its blockchain to facilitate a transfer from Mitsubishi’s Krungsri account to its Standard Chartered account, according to a press release.
Using this technology in the future will allow Mitsubishi, and presumably other companies, “further improve its liquidity management efficiency and reduce their cost management,” the bank said.
Krungsri Consumer Group and digital banking and innovation head Thakorn Piyapan said the successful trial helped the bank gain the trust of Mitsubishi going forward, adding:
“Successfully completed in a matter of seconds, the technology-based transaction helps enhance their subsidiaries’ financial liquidity toward greater flexibility and efficiency.”
The bank previously trialed its blockchain in a cross-border test in September 2017, according to the release.
Bank of Ayudhya notably is also trialing Ripple’s xCurrent blockchain to also transfer payments between Thailand and Singapore, as previously reported by CoinDesk. As with its own blockchain platform, the bank hopes to test “high-speed cross-border payments between independent banks.”
Earlier this week, Banco Masventas in Argentina also trialed a cross-border payment – though it specifically used bitcoin through cryptocurrency startup Bitex to facilitate the transaction.
Krungsri Bank image via photobyphm / Shutterstock