Singapore Gulf Bank (SGB) has launched a service enabling institutional clients to mint and redeem stablecoins directly from their bank accounts, using the Solana layer-1 blockchain to provide 24/7 settlement between fiat and digital assets. The service initially supports Circle’s USDC for transactions above $100,000 and includes temporary fee waivers for minting and redemption on Solana, the bank said. SGB plans to add other tokens such as Tether’s USDT, Ethena’s USDe and Global Dollar (USDG).
The feature is integrated into SGB’s internal clearing system, allowing funds to move between on-chain and traditional balances without routing through intermediary banking networks.
The launch follows broader moves by payments firms, banks and regulators to embed stablecoin settlement and blockchain infrastructure into traditional finance to cut costs and speed settlement. In March, Mastercard agreed to acquire stablecoin infrastructure firm BVNK in a deal worth up to $1.8 billion; Mastercard’s chief product officer Jorn Lambert said many financial institutions and fintechs are shifting toward services built around stablecoins and tokenized deposits. Visa has also begun operating validator nodes on the Tempo network, where validators can earn stablecoin-based rewards for processing transactions.
Regulatory change is progressing in some regions. Pakistan’s central bank in April allowed banks to serve licensed crypto firms and signed an exploratory agreement to assess World Liberty Financial’s USD1 stablecoin for cross-border payments. In Europe, a consortium of banks including ING, UniCredit and BBVA is developing a euro-pegged stablecoin intended for distribution through exchanges and banking channels, targeting a second-half 2026 launch.
The broader stablecoin market continues to grow, with market capitalization above $320 billion at the time of publication, according to DeFiLlama.
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