Singapore Gulf Bank has launched a 1:1 USD–USDC stablecoin service on the Solana blockchain for its clients. The regulated digital bank already runs SGB Net, a real-time settlement network that handles more than $2 billion in monthly fiat payments.
With the new stablecoin layer, verified clients can mint, convert, hold, and trade USDC directly from their bank accounts. The bank pegs each USDC on Solana to one US dollar held within its regulated banking platform.
The service focuses first on corporate customers that need faster cross‑border payments and treasury tools across Asia and the Gulf region. Retail users are expected to gain access later, once the bank completes the first rollout phase and testing.
How the 1:1 USD–USDC Service Works
Clients can deposit fiat currencies, such as USD, into their SGB accounts and mint USDC on Solana at a 1:1 fixed rate. They can also redeem USDC back into bank deposits without sending funds through external exchanges or unregulated platforms.
For a launch period, Singapore Gulf Bank is waiving transaction and gas fees for minting and redeeming stablecoins on Solana. This zero‑fee window is designed to lower friction for firms that want to test blockchain payments at scale.
SGB chose Solana because of its high throughput and low on‑chain costs, which support high‑volume, real‑time transfers. The bank says Solana’s settlement speed helps it move closer to real‑time cross‑border transfers for corporate clients.
Why Singapore Gulf Bank is Using Solana
The Central Bank of Bahrain regulates Singapore Gulf Bank, and investors such as the Whampoa Group and Mumtalakat back it. It is positioning its platform as a bridge between traditional banking and blockchain rails for everyday finance.
By integrating stablecoins into SGB Net, the bank unifies fiat and digital asset settlement within a single regulated environment. This setup aims to reduce operational complexity for institutional users who currently juggle multiple banks, exchanges, and custodians.
SGB has also partnered with Fireblocks to provide secure custody and wallet infrastructure for digital assets, including stablecoins. That partnership uses multi‑party computation to protect wallets used for treasury and payment operations.
The bank sees USDC on Solana as a tool for faster, cheaper cross-border payments between the Gulf and Asian markets. Instead of waiting days for international wires, clients can move tokenized dollars in seconds and settle with trading partners who also use SGB Net or on‑chain wallets.
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