Regulated banks in Singapore enter the stablecoin race: SGB connects fiat currency with USDT and USDC interoperability

2026-02-02 09:14:30

On February 2, news, Singapore’s Gulf Bank (SGB) announced the launch of a new regulated fiat-stablecoin interoperability service, allowing institutional clients to mint, exchange, hold, and trade stablecoins within a single compliant platform. This service will be deployed on its proprietary clearing network SGB Net, supporting the circulation of mainstream stablecoins such as USDT and USDC across multiple blockchain networks, and can be directly integrated with fiat settlement systems.

SGB stated that the current stablecoin management process remains complex, and institutions face high friction costs in compliance, custody, and clearing. CEO Shawn Chan pointed out that the bank’s goal is to provide a unified infrastructure for traditional finance and digital assets, enabling seamless movement of funds between on-chain and off-chain.

SGB Net is the real-time multi-currency clearing network launched by the bank this year, primarily targeting digital asset-related enterprises. Currently, its monthly fiat processing volume has exceeded $2 billion. The new service will operate on this network and include comprehensive KYC, KYB, and anti-money laundering compliance modules to meet cross-border payment and institutional-level risk control requirements.

In terms of fund security, SGB has partnered with crypto infrastructure provider Fireblocks, which provides custody and security technology support. The two parties reached a strategic cooperation in November last year, aiming to reduce operational risks and improve settlement efficiency through automation. SGB revealed that it is currently working with ecosystem partners and regulators to advance the final compliance framework, which is expected to go live in the first quarter of 2026.

From an industry perspective, the demand for regulated stablecoins is rising, especially for dollar-pegged stablecoins, which have become an important tool for global digital settlements and cross-border liquidity. Recently, Tether launched a compliant stablecoin USA₮; in the UAE, USDU has also received approval from the central bank. These developments indicate that the integration of traditional finance and blockchain is accelerating, and SGB’s deployment may become a key regional infrastructure node.

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