Thailand Approves USDT, USDC for Trading, Boosting Stablecoin Adoption

The Thailand Securities and Exchange Commission (SEC) has given the green light to Tether’s USDT and Circle’s USDC for cryptocurrency trades, enabling these stablecoins to be listed on regulated exchanges throughout the country. This decision comes after the SEC solicited public feedback on proposed regulatory changes, which were finalized in February and set to take effect on March 16.

The approval of USDT and USDC marks a significant step in Thailand's efforts to legitimize cryptocurrency usage and promote stablecoin adoption to boost domestic revenue. This move follows the establishment of a regulatory sandbox in August 2024, which allowed select service providers to experiment with cryptocurrencies.

With this approval, USDT and USDC join a select group of five other cryptocurrencies that are approved for trading in Thailand: Bitcoin (BTC), Ether (ETH), XRP (XRP), Stellar Lumen (XLM), and cryptocurrencies being tested for settlement by the Bank of Thailand.

Tether announced on March 10 that the approval allows USDT to be adopted by digital asset businesses and used as a payment rail within the country. This development is expected to facilitate cryptocurrency trades and provide an alternative to traditional remittances, particularly in emerging markets.

Stablecoins are increasingly seen as a transformative use case for cross-border payments and remittances. In emerging markets, using stablecoins for remittances can be significantly cheaper than traditional methods. This trend is driven by the lower costs and faster transaction times associated with stablecoin transfers compared to traditional payment methods.

The circulating supply of stablecoins is currently valued at nearly $230 billion, with Tether’s USDT accounting for just over 63% of the total market. This highlights the growing importance of stablecoins in the global financial landscape and their potential to revolutionize cross-border payments and remittances.