Avalanche Enables KBank and StraitsX to Streamline Payments Between Thailand and Singapore

Thailand’s Kasikornbank, also known as KBank, has partnered with StraitsX and Avalanche to streamline cross-border payments between Thailand and Singapore. The initiative, unveiled at the Singapore FinTech Festival 2025, aims to allow real-time settlement of blockchain-based e-money for tourists and merchants.

The project, called “Seamless Travel Payments on Chain,” enables Thai tourists to pay in Singapore using KBank’s Q Wallet app. Transactions are converted into XSGD, the Singapore Dollar-pegged stablecoin issued by StraitsX, ensuring merchants receive funds in local currency instantly.

How Does the KBank-StraitsX Integration Work?

The integration is built around three key phases designed to enable cross-border payment interoperability while adhering to regulatory standards.

Phase 1: Outbound Tourists

• Thai travelers visiting Singapore can use Q Wallet by KBank, which holds Q-money, to pay at GrabPay-supported merchants and select PayNow-enabled merchants.
• Payments are converted in real time to XSGD, settling immediately in Singapore dollars.
• This phase is under testing in the Bank of Thailand’s Regulatory Sandbox, with an expected launch by Q2 2026.

Phase 2: Inbound Tourists

• Singaporean visitors to Thailand will be able to pay in Thai Baht using their local wallets holding XSGD.
• Funds are converted to Q-money for merchants, allowing instant settlement without traditional currency conversion delays.
• Phase 2 is pending regulatory approvals in both countries.

Phase 3: Cross-Border KYC Verification

• The final phase introduces cross-border Know Your Customer (KYC) verification.
• This ensures international identity verification standards align with both Bank of Thailand and Monetary Authority of Singapore requirements.
• Regulatory approvals are expected in the first half of 2026.

Why Avalanche Was Chosen

Avalanche provides the underlying technology for StraitsX’s XSGD token and enables the integration with KBank’s Quarix blockchain developed by Orbix Technology. Key features include:

• Custom Permissioned Chains: Allows banks to configure privacy, regulatory compliance, and access control.
• Interoperability: Connects Quarix and XSGD for seamless settlement between e-money systems.
• Real-Time Settlement: Eliminates delays of traditional cross-border payments, which can take days and hide fees.
• Transparency and Security: Blockchain tracks and verifies transactions to meet institutional standards.

Avalanche’s network provides a controlled environment for regulated digital currencies while allowing scalability for regional payment corridors.

Who Are the Key Partners?

The project brings together leading financial and technology players from Thailand and Singapore:

• Kasikornbank (KBank): Thailand’s second-largest bank, provider of Q Wallet, driving digital financial infrastructure.
• Orbix Technology: KBank group company developing Quarix blockchain.
• StraitsX: Singapore-based MAS-licensed Payment Institution issuing XSGD, pegged 1:1 to Singapore dollars and backed by reserves at DBS, Standard Chartered, and CIMB.
• Avalanche (Ava Labs): Blockchain network enabling real-time settlement and interoperability between systems.

Government representatives also participated, including the Bank of Thailand’s Deputy Governor for Financial Stability and MAS officials.

How the System Handles Cross-Border Payments

The integration uses blockchain to link regulatory-compliant digital money from each country. Tourists can scan QR codes at merchants and pay using familiar wallet apps. The conversion and settlement occur instantly on-chain, removing the need for multiple intermediaries.

• Efficiency: Cross-border transactions that normally take days are completed in seconds.
• Compliance: Permissioned chains with governance measures meet institutional and regulatory requirements.
• User Experience: Travelers pay through familiar interfaces, reducing friction in foreign transactions.

Comparison With Traditional Systems

Traditional cross-border payments often involve multiple banks and intermediaries. Transactions appear instant but may take days to settle and include hidden fees. The KBank-StraitsX-Avalanche system provides:

• Direct settlement between e-money systems.
• Real-time currency conversion and merchant settlement.
• Transparent transaction tracking.

This model resembles other regional blockchain initiatives. For example, Alipay+ supports payments for 1.6 billion tourists across Southeast Asia, including GrabPay merchants in Singapore.

Regional Implications

This corridor forms part of Project BLOOM (Borderless, Liquid, Open, Online, Multi-currency), led by the Monetary Authority of Singapore. The initiative aims to establish a secure and scalable digital financial system for Southeast Asia.

StraitsX recently announced plans to extend its network across Thailand, Singapore, Taiwan, and Japan, enabling real-time cross-border settlement with XSGD as the core settlement asset.

Recent Developments for Avalanche

• Securitize EU TSS: Securitize is launching a regulated pan-European Trading and Settlement System on Avalanche, allowing tokenized securities to trade and settle across all 27 EU states.
• Bitwise AVAX ETF: Bitwise filed an S-1 amendment for a spot Avalanche ETF incorporating staking, expected on NYSE Arca in Q1 2026.

Conclusion

KBank’s partnership with StraitsX and Avalanche establishes a functioning cross-border payment corridor between Thailand and Singapore. The system allows instant settlement of Q-money and XSGD, maintains regulatory compliance, and enables tourists and merchants to transact efficiently. Permissioned chains, real-time settlement, and interoperability with existing banking systems ensure a secure and transparent payment experience, laying the foundation for a broader regional digital financial infrastructure.

Resources

1. Avalanche on X: Announcements on November 27

2. Press release by Securitize: Securitize Wins Full EU Regulatory Approval and Selects Avalanche for Initial Deployment of European Trading & Settlement System

3. Coindesk Article: Avalanche ETF Race

4. SEC Document: Bitwise S-1 Amendment