Singapore Gulf Bank launches zero-fee stablecoin service

By Vriti Gothi

Singapore Gulf Bank (SGB) has unveiled a new stablecoin minting and redemption service, allowing clients to issue and redeem USDC and USDT directly on the Solana blockchain.

The move signals a growing push by regulated financial institutions to integrate blockchain-based payment rails into mainstream banking services, particularly for cross-border and treasury use cases. SGB said the service is designed to support faster and more efficient transaction flows between the Gulf Cooperation Council (GCC) and Asian markets, a corridor that has seen rising trade, investment, and digital asset activity.

As part of a launch programme aimed at accelerating adoption, SGB will waive transaction and gas fees for clients minting and redeeming stablecoins on Solana. The bank said the zero-fee structure is intended to reduce friction for corporate users testing and scaling blockchain-based settlement models.

The stablecoin service will initially be available to SGB’s corporate clients, with a focus on transaction processing and treasury management. The bank plans to extend access to personal banking customers at a later stage.

SGB said it has processed more than $7 billion in transactions since launching operations in March this year. The addition of stablecoin minting rails is positioned as a complementary layer to its existing infrastructure, enabling near real-time settlement and improved liquidity management across jurisdictions.

“The adoption of stablecoins by regulated banks reflects their growing real-world utility,” said Shawn Chan, Chief Executive Officer of SGB. “By leveraging Solana’s speed and cost advantages, we are providing our clients across the GCC and Asian markets with a bank-grade compliant stablecoin solution that finally makes real-time, cross-border and cross-counterparty transactions viable for corporates.”

The announcement builds on a series of recent infrastructure initiatives by the digital bank. Earlier this year, SGB launched SGB Net, a proprietary real-time, multi-currency clearing network. In November, it also announced a partnership with digital asset infrastructure provider Fireblocks to support secure digital asset custody and treasury management.

Industry observers note that bank-led stablecoin issuance and settlement services are gaining momentum as institutions seek compliant alternatives to traditional correspondent banking. SGB’s Solana-based deployment underscores how high-throughput blockchains are increasingly being positioned for regulated, enterprise-grade financial use.