Thai lender KASIKORNBANK (KBank) has entered a strategic collaboration with Ant International to develop blockchain-based infrastructure for real-time, 24/7 cross-border USD transactions, combining KBank’s regulated banking capabilities with AI tools from Ant Group’s cross-border payments arm.
The partnership will leverage Kinexys’ Blockchain Deposit Accounts, a distributed ledger platform by J.P. Morgan, to enable real-time USD liquidity movement. This is expected to improve transaction speeds and address liquidity bottlenecks in the regional cross-border payments market that currently forces SMEs to navigate fragmented clearing and settlement systems.
Under the agreement, the two parties plan to develop end-to-end solutions covering payment acceptance, clearing, and settlement across Southeast Asia, subject to regulatory approvals. The move builds on an existing relationship: KBank’s KPLUS mobile app is already integrated with Alipay+, Ant’s digital wallet gateway, linking to over 1.8 billion consumer accounts globally. KPLUS also serves as a payment option on Google Pay for Thai merchants via Antom.
Dr. Karin Boonlertvanich, Executive Vice President at KBank, said: “This collaboration addresses a fundamental limitation in today’s cross-border financial systems, where liquidity movement remains constrained by fragmented infrastructure.”
Ant International’s Kelvin Li added: “Across emerging markets, industry leaders like KBank are preparing communities for a more interconnected global economy with broader and more secure application of AI and blockchain technology.”
The deal occurs against a backdrop of expanding ASEAN cross-border payment initiatives, including the ASEAN Cross-Border Payment Linkage initiative and individual national CBDC pilots. Thailand’s Bank of Thailand has been exploring digital baht infrastructure since 2022, while Singapore’s Monetary Authority has advanced Project Orchid with the Bank of Japan for cross-border digital currency settlements.
For Asian legal readers, the KBank-Ant arrangement raises questions about regulatory oversight of blockchain-based banking services across borders, particularly as banks increasingly partner with offshore tech platforms to bypass legacy correspondent banking constraints.
Source: FinTech Singapore — Original article