Singapore Gulf Bank (SGB) has introduced a service that lets institutional clients mint and redeem stablecoins directly from their bank accounts, using the Solana layer-1 blockchain network to enable round-the-clock settlement between fiat and digital assets.
The service will initially support Circle USDC (USDC) transactions above $100,000 and includes temporary fee waivers for minting and redemption on the Solana network, according to SGB’s announcement.
Additional assets such as Tether’s USDT (USDT), Ethena’s USDe (USDe) and Global Dollar (USDG) are expected to follow, the company said.
The new feature is integrated into the bank’s internal clearing system, allowing funds to move between onchain and traditional balances without relying on intermediary banking networks, SGB said.
The launch comes as payment networks, regulators and banks around the world move to integrate stablecoin settlement and blockchain infrastructure into the traditional financial system to reduce costs and settlement times.
Related: Related: Euro stablecoins dominate non-dollar market, Visa-backed report finds
Banks, payment networks and regulators push stablecoin integration
In March, Mastercard agreed to acquire stablecoin infrastructure company BVNK in a deal valued at up to $1.8 billion.
Jorn Lambert, Mastercard’s chief product officer, said “most financial institutions and fintechs” are moving toward services built around stablecoins and tokenized deposits.
Separately, Visa began operating validator nodes on the Tempo network on Tuesday. Validators on the network can earn stablecoin-based rewards for processing transactions.
A Visa spokesperson told Cointelegraph the company is focused on the technical and strategic aspects of operating a validator, rather than generating revenue.
Regulatory frameworks around the world are also beginning to catch up. In April, Pakistan’s central bank allowed banks to serve licensed crypto firms, ending years of legal restrictions.
Earlier this year, the country signed an exploratory agreement to assess World Liberty Financial’s USD1 (USD1) stablecoin and its potential use for cross-border payments.
Meanwhile in Europe, where euro-denominated stablecoins still lag far behind dollar-backed tokens, a consortium of banks including ING, UniCredit and BBVA is developing a euro-pegged stablecoin.
The banks plan to distribute the stablecoin across crypto exchanges and banking channels, with a launch targeted for the second half of 2026.
The moves come as the stablecoin market cap, which exceeds $320 billion at the time of publication, according to data from DeFiLlama, continues to grow.
