The feasibility programme is a result in SCB’s participation in a US$55 million Series B
Digital Ventures, a fintech subsidiary investment arm of Thailand’s Siam Commercial Bank (SCB), revealed this week it participated in a US$55 million Series B raised by San Francisco-based financial services company Ripple and plans to invest in a blockchain feasibility study.
The amount of Digital Venture’s participation was undisclosed, but the feasibility study will be the first time a Thai bank has invested in “testing of enterprise-grade blockchain technology”.
The goal for the investment is to work towards onboarding an international transaction system that is fast, cost-saving, private and secure.
“Blockchain is an exciting, emerging financial technology that is slated to transform the world of financial services and online transactions,” said Thana Thienachariya, the Chairman of the Executive Committee at Digital Ventures in an official statement.
“Through an investment in and pilot program with Ripple, SCB can explore the opportunity in utilizing blockchain to develop new products and services to better serve customers”.
Ripple is a B2B financial services company that can not be defined as a ‘blockchain company’. Rather, it is a cross-border payments company that uses a variety of approaches (depending on the client’s needs) to help find low-cost and speedy solutions.
In the case of SCB, the partnership will involve a blockchain feasibility programme.
“When the blockchain network is commercially viable and gets approval from Thai financial regulatory authority in the future, the knowledge base gained from this investment can be integrated to our system, and will bring a significant improvement in the quality of SCB’s international money transfer services through fast, convenient, cost-saving and secure world-class online transaction platform,” said Thienachariya.
Ripple’s clients include Standard Chartered Bank, Royal Bank of Canada, Westpac, National Australia Bank, Mizuho Financial Group, BMO Financial Group and Shanghai Huarui Bank.
Digital Ventures has US$50 million in its fund and focuses on the fintech space.
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