Myanmar’s National Unity Government (NUG) is set to launch a neobank, the Spring Development Bank (SDB), which will run on Polygon and offer currency swaps via Uniswap v3 pools and USDT stablecoins. The bank will offer users currency swap, fixed deposits, and prize-linked savings account services. It will have a beta launch on July 22nd and be available on Google Play and Apple’s App Store.
Led by supporters of the ousted leader Aung San Suu Kyi, the bank will target Suu Kyi supporters as customers, including the Burmese diaspora. The NUG’s stance is that it is the legitimate sovereign and government of Myanmar, not the military junta. The bank’s stated objectives are to disrupt the country’s financial system, controlled by the military government, the State Administration Council (SAC). In addition to accessing banking services, users will be able to donate directly to the revolutionary effort via SDB.
The NUG’s Ministry of Planning, Finance, and Investment is the sole shareholder of the bank. SDB’s shares will be offered to the public in two phases, the spokesperson said. A pre-initial coin offering (ICO) round with the bank’s own token will be exclusively for SDB account holders, and the first ICO round will be offered to institutional investors. The bank said that it will also raise funds via remittance, currency exchange, loans, and other monetary products.
SDB aims to onboard 100,000 active users in six months’ time and support four currencies: the Myanmar kyat (MMK), U.S. dollar, Singaporean dollar, and Thai baht. “MMK will be swapped to USDT stablecoin,” an SDB spokesperson said. “The rest will be kept in the original or native currency to minimize currency and exchange risk.” The NUG recognized stablecoin Tether (USDT) as legal tender at the end of last year.
Using SDB, there is a 2% spread on exchange swap, a more appealing rate than other options on the market. The bank also plans to launch an e-lottery program on the platform where tickets will be issued to customers as non-fungible tokens (NFTs). The bank will comply with the Basel Accords and Financial Action Task Force (FATF) regulations.
For currency swaps, users will be able to deposit foreign currency into the bank and receive stablecoin in return. When the exchange rate is to their liking, they can exchange their foreign currency stablecoin for kyat stablecoin and use a local agent to swap that into cash within Myanmar.