Singapore Gulf Bank has introduced a new service allowing institutional clients to mint and redeem stablecoins directly from their bank accounts, enabling continuous settlement between fiat and digital assets. The system operates on the Solana blockchain, providing round-the-clock transaction capabilities without depending on traditional banking settlement hours.
The service initially supports transactions involving USD Coin issued by Circle, with a minimum transfer threshold set at $100,000. The bank also announced temporary fee waivers for minting and redemption transactions conducted through the Solana network, aiming to encourage early institutional adoption.
Additional stablecoins, including Tether, USDe and Global Dollar, are expected to be supported in future phases.
Integration Removes Need for Intermediary Banking Networks
According to the bank, the stablecoin minting and redemption service is integrated directly into its internal clearing infrastructure. This design allows funds to move seamlessly between onchain digital balances and traditional fiat accounts without relying on intermediary banks, reducing settlement times and operational complexity.
The launch reflects a wider industry shift toward blockchain-based settlement systems aimed at improving speed and reducing transaction costs. Financial institutions globally are increasingly adopting stablecoin-based infrastructure as part of broader digital transformation strategies.
Global Institutions Accelerate Stablecoin Adoption
Major financial players are continuing to expand stablecoin-related initiatives. For example, Mastercard recently agreed to acquire stablecoin infrastructure firm BVNK in a deal valued at up to $1.8 billion, signaling growing institutional interest in blockchain settlement solutions.
Meanwhile, Visa has begun operating validator nodes on the Tempo network, allowing participation in transaction processing and stablecoin reward mechanisms.
These developments come as the global stablecoin market capitalization surpasses $320 billion, highlighting sustained growth and expanding adoption across banking, payments and cross-border financial systems.
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