Bank of Ayudhya Tests Blockchain to Send Funds from Thailand to SingaporeMay 24, 2018, 10:57AM
Bank of Ayudhya has implemented the settlement of a cross border transaction between Thailand to Singapore using ledger technology.
Thailand based Bank of Ayudhya (Krungsri) announced May 22, 2018, that it has successfully implemented blockchain technology in the settlement of an international cross-border transaction. The Thai subsidiary of Mitsubishi Corporation transferred funds from its Krungsri account to a Standard Chartered account in Singapore.
Thakorn Piyapan, Head of Digital Banking Innovation at Krungsri said,
“Krungsri once again achieves a success in the real time cross-border funds transfer service based on Krungsri Blockchain Interledger.”
The international payment transfer made by Bank of Ayudhya using blockchain technology was achieved by having Mitsubishi Corporation, Japan-based MUFG Bank and Standard Chartered Bank in the consortium.
Blockchain technology is the backbone of cryptocurrencies such as Bitcoin and Ethereum. The ledger is a public record of all transactions made in the network. By using distributed ledger technology, it is possible to transfer funds in real-time. Financial institutions are increasingly exploring the use of blockchain technology as a means of payment settlement to cut down on the bureaucracy involved with international transactions. According to a report by Accenture, the top eight merchant banks could save almost $8 billion annually by using blockchain technology.
This is not the first instance Krungsri used blockchain technology to its advantage though. In June 2017, the bank received an approval from the Bank of Thailand to offer a real-time fund settlement option to its corporate clients. In September 2017, it used the Krungsri Blockchain Interledger for the country’s first ever cross-border payment using the technology. As a consequence of this achievement, the platform was awarded the ‘Most Innovative Emerging Digital Technologies Project’ title at the Asset Triple A Digital Awards 2017.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.