In an exciting development in the world of finance and digital assets, Thailand’s second-largest lender by assets, Kasikornbank (KBank), has made a significant move into the cryptocurrency arena. The bank has acquired a majority stake in the local crypto exchange, Satang. This ac...
In an exciting development in the world of finance and digital assets, Thailand’s second-largest lender by assets, Kasikornbank (KBank), has made a significant move into the cryptocurrency arena. The bank has acquired a majority stake in the local crypto exchange, Satang. This acquisition signifies a notable shift in the traditional banking sector’s approach to cryptocurrencies and blockchain technology.
KBank’s Strategic Acquisition
KBank, one of the largest banks in Thailand, acquired a whopping 97% of shares in Satang, a leading cryptocurrency business operating a crypto exchange and other digital asset services in Thailand. This acquisition, valued at 3.7 billion Thai baht ($103 million), was announced on October 30, 2023, on the Stock Exchange of Thailand (SET) website.
The transaction is being facilitated through KBank’s new subsidiary, Unita Capital, which is aimed at investing in the digital asset industry. This strategic acquisition not only marks KBank’s entry into the crypto industry but also underscores its commitment to embracing and investing in digital innovation.
Following the acquisition, Satang Corporation will be rebranded as Orbix Trade Company Limited. KBank’s crypto business will be structured into three divisions: Orbix Custodian (the custody platform), Orbix Invest (the venture arm), and Orbix Technology (a blockchain technology developer).
Satang’s Legacy and Future
Satang’s founder, Poramin Insom, is a known figure in the crypto world, renowned for launching the privacy-focused cryptocurrency Firo (FIRO), formerly known as Zcoin. He confirmed the acquisition by KBank on Facebook, expressing his continued commitment to the company and its operations.
Satang’s other companies include the blockchain service platform, Satang Technology, and space-related entity, Satang Space. These companies are expected to continue their operations unaffected by the acquisition, ensuring that Satang’s corporate customers receive the same high-quality services they have come to expect.
KBank’s Vision for the Future
This acquisition comes on the heels of KBank launching a $100 million fund targeting Web3, fintech, and artificial intelligence in September 2023. As Thailand’s second-largest lender by assets, following Bangkok Bank, KBank’s move into the crypto industry is a significant development, signaling a potential shift in how traditional banks view and interact with digital assets.
According to data from the SET, Thai NVDR Company Limited is the largest shareholder of KBank, with the Stock Exchange of Thailand owning 99.9% of NVDR’s shares.
Conclusion: A New Era for Crypto in Thailand
KBank’s acquisition of Satang represents a pivotal moment in the convergence of traditional banking and digital assets. It signifies the growing acceptance of cryptocurrencies and blockchain technology within mainstream financial institutions.
As KBank ventures into this new territory, it paves the way for other traditional financial institutions to explore the opportunities presented by the digital asset industry. This development not only strengthens Thailand’s position in the global crypto landscape but also opens up new possibilities for innovation and growth in the country’s financial sector.