Thailand’s Securities and Exchange Commission (SEC) has officially approved Tether’s USDT and Circle’s USDC stablecoins for trading on regulated exchanges.
Thailand’s Securities and Exchange Commission (SEC) has officially approved Tether’s USDT and Circle’s USDC stablecoins for trading on regulated exchanges. This decision, made after a public consultation in February, will take effect on March 16. The SEC previously approved only Bitcoin (BTC), Ether (ETH), XRP, Stellar (XLM), and certain tokens used in the Bank of Thailand’s settlement system for trading. With this move, Thailand expands its list of approved cryptocurrencies, further legitimizing the use of stablecoins in the country.
Tether’s approval in Thailand comes after the company ensured compliance with local regulations, and it allows digital asset businesses to adopt USDT. Tether CEO Paolo Ardoino expressed the company’s commitment to providing Thai users with secure and reliable stablecoin services, emphasizing the company’s focus on improving its offerings in the Thai market.
USDT, the largest stablecoin by market capitalization, is valued at $142 billion, followed by USDC with a market cap of $58 billion. Thailand’s decision aligns with global trends that show increasing use of stablecoins in the crypto space. This shift is especially prominent in emerging markets, where stablecoins are becoming a preferred option for cross-border payments. A report from a16z Crypto revealed that in December 2024 alone, 28.5 million unique stablecoin users conducted over 600 million transactions, indicating the growing popularity of stablecoins, particularly in regions like Southeast Asia, Africa, and Latin America.
Stablecoins offer cheaper and faster alternatives to traditional remittance systems. In Sub-Saharan Africa, for instance, using stablecoins for remittances can cost up to 60% less than traditional methods. The approval of USDT and USDC in Thailand is expected to increase their use in the country’s financial systems and contribute to the broader adoption of cryptocurrencies. Thailand is also enhancing its regulatory framework, having set up a regulatory sandbox in August 2024 to allow service providers to experiment with crypto technologies.
Despite Tether’s dominance in the stablecoin market, it faces rising competition. Global financial institutions, such as Bank of America, are looking to launch their own stablecoins for cross-border payments. In addition, Tether has been excluded from the EU’s Markets in Crypto-Assets (MiCA) regulations, complicating its growth in Europe. However, Thailand’s approval of USDT and USDC demonstrates the country’s commitment to integrating cryptocurrencies into its financial ecosystem and positioning itself as a leader in Southeast Asia’s crypto space.
With this move, Thailand continues to push for wider cryptocurrency adoption, setting a strong precedent for other nations in the region to follow.
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