Singapore Gulf Bank (SGB) today launched a stablecoin mint and redeem service, allowing clients to move between fiat and digital assets directly from their bank accounts. The system is live on Solana, marking the bank’s first production rollout of on-chain settlement infrastructure.
According to the official announcement, the service intends to target corporate and high-net-worth clients, enabling round-the-clock settlement without focusing only on traditional correspondent banking networks.
Direct fiat-to-crypto conversion for institutional clients
According to the bank, the system supports transactions in USD Coin for transfers exceeding $100,000. Clients can mint or redeem stablecoins directly within the bank’s environment, reducing reliance on third-party intermediaries.
The bank said the setup is designed to streamline treasury operations, cross-border payments, and liquidity management by connecting fiat balances with blockchain-based assets in real time.
Moreover, SGB CEO Shawn Chan commented on the development, stating, “By integrating stablecoin mint and redeem directly into the banking environment, we enable real-time movement between fiat and digital assets, improving cash flow, payments, and treasury management. We are building the bank for a borderless world, where businesses and individuals operate across jurisdictions.”
Solana chosen for speed and cost efficiency
SGB stated that it selected Solana for its initial rollout, citing its transaction speed and low costs. The bank is temporarily waiving both gas and banking fees for minting and redemption on the network, and offering volume-based incentives during the early phase.
The integration aims to connect on-chain activity with SGB Net, the bank’s internal clearing system, allowing funds to move between traditional accounts and blockchain rails without leaving the institution’s infrastructure.
Multi-chain expansion and broader stablecoin support planned
While Solana is the first network to go live, SGB said it plans to expand support to additional blockchains. The bank also intends to add more stablecoins, including Tether (USDT), USDe (Ethena), and Global Dollar (USDG).
The rollout positions the bank within a growing segment of regulated institutions offering direct access to digital asset infrastructure, particularly for high-value settlement use cases.
Banking integration signals shift in settlement models
By embedding stablecoin functionality within a regulated banking framework, SGB is linking traditional account systems with blockchain-based settlement. The model allows clients to move funds across jurisdictions without routing through legacy payment corridors.
The move shows a broader shift among banks testing on-chain rails for payments, as stablecoins gain traction in institutional finance.
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