Kasikorn Bank, one of Thailand’s leading financial institutions, acquired Cryptocurrency exchange Satang. Accordingly, it took an important step into the cryptocurrency industry. This strategic acquisition, valued at 3.705 billion Thai baht ($102.8 million), attracts attention. Accordingly, it is another example of traditional financial institutions in Thailand entering the crypto space.
Details of purchasing cryptocurrency exchange
The acquisition was made through Kasikorn Bank’s new subsidiary, Unita Capital, which focuses on investing in digital asset companies. The agreement expresses the bank’s commitment to expand its presence in the cryptocurrency industry. Upon completion of the acquisition, Satang will rebrand as Orbix. The new entity will also establish three additional subsidiaries, demonstrating a diversified approach to crypto business ventures.
Among additional subsidiaries, Orbix Custodian will provide a service related to protecting cryptocurrency assets. The second subsidiary, Orbix Invest, will be a digital asset fund manager providing investment opportunities in the crypto market. Finally, Orbix Technology will be a Blockchain technology development arm with the potential to contribute to Blockchain innovation.
What does aggressive entry mean?
Kasikorn Bank’s aggressive entry into the cryptocurrency industry attracts attention. This reflects a growing trend among major financial institutions in Thailand. The move comes after K-Bank recently launched a $100 million fund targeting web3, fintech and artificial intelligence (AI). The bank’s rival, Siam Commercial Bank (SCB), is also actively expanding into web3 and crypto.
Professor Udomsak Rakwongwan, who teaches at Kasetsart University and is one of the founders of FWX.finance, in which K-Bank invested, commented on the bank’s strategic move. He pointed out that K-Bank’s aim is compatible with SCB’s approach. He also emphasized that it is to provide a comprehensive range of cryptocurrency services.
License recruitment continues
K-Bank didn’t just get a crypto exchange license. It is also actively pursuing the licenses required to offer various cryptocurrency services in Thailand. The professor also emphasizes that the Thai market benefits from strong institutional support. He also notes that this makes it a unique environment for crypto growth.
It is worth noting that Gulf, a Thai energy giant, has established a joint venture with Binance through the Gulf Innova fund, offering a legal, local version of the exchange to the Thai market. This underlines the increasing competition among major players entering the cryptocurrency industry. When we look at Kriptokoin.com, this can create difficulties for smaller businesses. K-Bank is ambitious about its plans. Accordingly, it aims to capture 20% of the crypto market share in Thailand by 2024. This bold goal demonstrates its commitment to becoming a leading player in the growing digital asset ecosystem.
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