Singapore Gulf Bank (SGB) has launched a stablecoin minting and redemption service for institutional clients, integrating it directly with bank accounts using the Solana blockchain for 24/7 settlement. The service starts with Circle’s USDC stablecoin for transactions above $100,000 and includes fee waivers, with plans to add more assets like Tether’s USDT. This move aligns with broader trends in traditional finance, where banks and payment networks like Mastercard and Visa are increasingly adopting stablecoin and blockchain infrastructure.
Singapore Gulf Bank (SGB) introduced a service enabling institutional clients to mint and redeem stablecoins directly from their bank accounts. The service uses the Solana blockchain network to facilitate round-the-clock settlement between fiat and digital assets.
It will initially support Circle’s USDC stablecoin for transactions above $100,000 and includes temporary fee waivers. The bank stated that additional assets such as Tether’s USDT, Ethena’s USDe, and Global Dollar (USDG) are expected to follow.
The feature is integrated into the bank’s internal clearing system. This allows funds to move between on-chain and traditional balances without relying on intermediary banking networks.
The launch coincides with a global push by payment networks, regulators, and banks to integrate stablecoin settlement. This integration aims to reduce costs and settlement times within the traditional financial system.
In March, Mastercard agreed to acquire stablecoin infrastructure company BVNK in a deal valued at up to $1.8 billion. Mastercard’s chief product officer, Jorn Lambert, commented that “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. Validators on this network can earn stablecoin-based rewards for processing transactions, though a company spokesperson indicated the focus is on technical and strategic aspects rather than revenue generation.
Regulatory frameworks are also evolving, as evidenced by Pakistan’s central bank recently allowing banks to serve licensed crypto firms. Furthermore, the country signed an exploratory agreement to assess World Liberty Financial’s USD1 stablecoin for potential use in cross-border payments.
In Europe, a consortium of banks including ING, UniCredit, and BBVA is developing a euro-pegged stablecoin. They plan to distribute it across crypto exchanges and banking channels, targeting a launch in the second half of 2026.
These developments occur as the total stablecoin market cap continues to grow, exceeding $320 billion according to data from DeFiLlama.
