Thailand’s Second-Largest Bank Explores Digital-Asset Ecosystem
Kasikornbank Pcl, Thailand’s second-largest bank, is embarking on the development of a digital-asset ecosystem to offer a unique funding avenue for companies. The bank recently acquired Satang Corp., a licensed crypto exchange in Thailand, and is now encouraging some clients to consider token issuance for fundraising purposes. According to Pipit Aneaknithi, the co-president of Kasikornbank, issuing tokens can be a cost-effective alternative compared to traditional markets. Aneaknithi stated that the bank is serious about building a digital-asset ecosystem that is more efficient than existing platforms.
Cautious Sentiment in the Thai Crypto Market
Despite Kasikornbank’s efforts, caution prevails among Thais due to the 2017 market crash. Official data shows that there were approximately 116,000 active crypto trading accounts in Thailand in November, significantly lower than the peak of 700,000 accounts in 2021. However, Aneaknithi remains optimistic and emphasized the bank’s commitment to navigating the crypto landscape carefully. He believes that with proper supervision in place, healthy expansion is possible.
Kasikornbank’s Acquisition of Satang Corp.
In October, Kasikornbank acquired a 97% stake in Satang through its subsidiary Unita Capital. The acquisition was worth nearly $103 million. As part of this deal, Kasikornbank plans to rename Satang as Orbix Trade Co. Ltd. Satang is one of the few regulated crypto exchanges in Thailand, having been established in 2017. In 2022, it faced civil sanctions from Thailand’s financial watchdog for falsifying trading volumes along with four other exchanges.
Hot Take: Kasikornbank’s Push for a Digital-Asset Ecosystem
Kasikornbank’s focus on developing a digital-asset ecosystem in Thailand demonstrates its forward-thinking approach to the evolving financial landscape. By acquiring Satang Corp., the bank has positioned itself to provide innovative funding options to companies through token issuance. While caution remains in the Thai crypto market, Kasikornbank believes that with proper supervision, the time is ripe for expansion. This move aligns with the global trend of financial institutions exploring the potential of cryptocurrencies and blockchain technology. As Thailand’s second-largest bank takes steps towards embracing the digital future, it sets an example for other traditional banks to follow suit.
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