Financial institutions are moving further into blockchain-based settlement infrastructure, with Singapore Gulf Bank (SGB) launching a stablecoin minting and redemption service aimed at corporate and high-net-worth clients.
The Bahrain-based lender said the new offering enables clients to convert fiat currencies into digital tokens, and vice versa, directly from their bank accounts, supporting continuous, real-time settlement without relying on traditional correspondent banking networks, which are often slower and involve multiple intermediaries.
The service initially supports transactions in USD Coin above $100,000, positioning it squarely at institutional users with large transaction requirements.
SGB said it plans to expand support to additional stablecoins, including Tether (USDT), USDe, and Global Dollar (USDG), as demand for tokenized dollar instruments continues to grow globally.
Transactions are currently facilitated on the Solana network, which is known for its high throughput and low transaction costs.
As part of the rollout, SGB is temporarily waiving gas and banking fees, while also offering volume-based incentives to encourage early adoption among clients exploring blockchain-based treasury and payment solutions.
According to the bank, the service is integrated into its proprietary clearing infrastructure, SGB Net, enabling seamless movement of funds between blockchain-based systems and traditional financial rails.
This integration is designed to address one of the key frictions in digital asset adoption — the gap between on-chain liquidity and off-chain banking systems.
The move reflects a broader shift among banks and financial institutions seeking to capture rising demand for stablecoin-based payments, particularly in cross-border transactions, where settlement speed, transparency, and cost efficiency are becoming increasingly important.
Stablecoins such as USDC are already being used by institutions for treasury management, liquidity provisioning, and international transfers.
SGB, established by Singapore-based Whampoa Group, said the platform operates within a regulated banking framework, aiming to provide clients with access to digital asset infrastructure while maintaining compliance, risk management, and security standards.
The launch underscores how traditional banking players are positioning themselves within the evolving digital asset ecosystem, as competition intensifies to build next-generation payment and settlement rails that could eventually rival conventional financial networks.