Singapore Gulf Bank (SGB) has rolled out a new service that lets institutional clients mint and redeem stablecoins directly from their bank accounts, using the Solana layer‑1 blockchain for around‑the‑clock settlement between fiat and digital assets. The initial offering supports Circle’s USDC for transactions exceeding $100,000, with temporary fee waivers for minting and redemption on Solana, and SGB says it plans to add other tokens such as Tether’s USDT, Ethena’s USDe and Global Dollar (USDG).
The capability is built into SGB’s internal clearing infrastructure, enabling transfers between on‑chain balances and traditional bank accounts without routing funds through intermediary banking networks. That integration is intended to streamline settlement and reduce operational complexity for institutional flows.
The launch comes amid a broader push by payments firms, banks and regulators to fold stablecoin settlement and blockchain rails into conventional finance to lower costs and accelerate settlement times. In recent months, Mastercard moved to acquire stablecoin infrastructure provider BVNK in a deal worth up to $1.8 billion, reflecting growing demand from financial institutions and fintechs for products based on stablecoins and tokenized deposits. Visa has also begun running validator nodes on the Tempo network, where validators can earn stablecoin‑style rewards for processing transactions.
Regulatory shifts are occurring in some regions. Pakistan’s central bank recently cleared banks to serve licensed crypto firms and agreed to explore 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 aimed at distribution through exchanges and banking channels, targeting a second‑half 2026 launch.
The stablecoin market has continued to expand, with total market capitalization above $320 billion at the time of publication, according to DeFiLlama. This report was produced under Cointelegraph’s editorial standards; readers are encouraged to independently verify the information.