The Securities and Exchange Commission (SEC) of Thailand has approved the use of Tether’s USDt and Circle’s USDC as part of the cryptocurrencies that can be traded in the country.
The two largest stablecoins, which currently have market capitalizations of $142,987,380,968 and $58,005,676,502, respectively, now join the list of existing digital assets such as BTC, XRP, ETH, and XLM that are allowed in Thailand.
The company behind the world’s largest stablecoin by market capitalization, Tether, stated in an official announcement that the approval means USDt will be listed on the country’s regulated exchanges, paving the way for its acceptance as a payment method.
In an effort to be flexible and transparent, Thailand’s SEC sought public opinion on its portal to determine whether stablecoins should be added to the list of tradable cryptocurrencies. The feedback on Tether USDt and Circle USD Coin was overwhelmingly positive, leading to the issuance of approval for these stablecoins.
What Does This Mean for the Thai Market?
The stability that stablecoins offer over other cryptocurrencies means that investors will be able to minimize losses when trading in Thailand’s crypto market.
The approval of USDt and USDC will also make the country more accessible to international investors who may have previously been deterred by the absence of stablecoin options.
Additionally, this move further strengthens Thailand’s position as a leader in crypto adoption within the region. It reflects the country’s forward-thinking approach to cryptocurrency regulation.
Most importantly, it is a game-changer for Thailand’s financial landscape.
Thailand was once ranked among the most crypto-friendly countries, and as the adoption of digital assets continues to grow, this development further cements its reputation in the space. Although Thailand authority once restricted Binance operation in the country, following regulatory concerns.
The introduction of Tether into Thailand’s financial system could eventually lead to the creation of a Thai Baht-backed Tether token. Existing Tether tokens include CNHt (Chinese Yuan), EURt (Euro), MXNt (Mexican Peso), USDt (US Dollar), and XAUt (Tether Gold). A TBHt stablecoin might be next.
Commenting on the development, Tether’s CEO, Paolo Ardoino, stated that his company will continue exploring the Thai market to provide digital asset users in the country “with a secure, transparent, and reliable stablecoin experience” while supporting the long-term success and adoption of stablecoins in Thailand.
Currently, there are over a hundred stablecoins in the crypto space. However, USDt and USDC remain the largest by market capitalization, followed by USDe ($5,452,190,384), DAI ($5,365,654,250), and FDUSD ($2,084,856,860).