O-Bank Begins Pilot Service for Dollar Stablecoin Cross-Border Payments

O-Bank (Wangdao Bank) has begun a trial service allowing corporate clients to receive cross-border payments in US dollar stablecoins. The bank partnered with virtual asset provider BitoGroup to launch the 'Corporate Stablecoin Cross-Border Payment Service' starting today.

Businesses can receive payment for goods and services from overseas partners via dollar stablecoins. To use the service, companies must open a corporate account at O-Bank and complete account setup and verification with BitoExchange. They can then create a stablecoin payment request through O-Bank's internet banking, specifying the recipient, amount, stablecoin type, and blockchain network.

O-Bank does not directly custody stablecoins. Instead, BitoExchange receives the stablecoins from overseas partners, converts them to US dollars, and deposits the funds into the company's O-Bank dollar account within one business day.

The service aims to reduce the burden of managing multiple platforms for stablecoin conversion. During the pilot phase, transaction limits apply: up to TWD 500,000 (approx. USD 213,500) per transaction, TWD 5 million (approx. USD 2.135 million) daily cumulative, and TWD 150 million (approx. USD 64 million) monthly.

O-Bank has integrated its KYC and AML systems with BitoGroup's on-chain transaction monitoring to manage risk. BitoGroup CEO Ching-Kuang Tai stated that stablecoins serve as a bridge connecting virtual assets and traditional finance, aiming to expand their use into corporate finance through this partnership.