Thailand’s Kasikornbank Developing Digital Asset Ecosystem for Token Sales
Kasikornbank, one of Thailand’s leading banks, is working on creating a digital asset ecosystem that will enable companies to raise capital through token sales. The bank’s co-president, Pipit Aneaknithi, believes that token sales are a more cost-efficient option compared to loans or equity sales.
This move follows the bank’s acquisition of digital asset exchange Satang Corp. for $100 million in October. There is a growing sentiment towards digital assets in Thailand, with Prime Minister Srettha Thavisin proposing the use of blockchain technology to distribute $14 billion and new regulations that support coin offerings.
Kasikornbank’s Contrasting Stance on Token Sales
Pipit stated that the bank is advising some clients to issue tokens for fundraising, emphasizing their commitment to developing a cost-efficient digital asset ecosystem. Grammy Entertainment and Broadcast Thai Television have already raised $7.6 million through a token offering to fund a movie. Billionaire Sarath Ratanavadi also plans to launch a crypto exchange in partnership with Binance.
In contrast to the US Securities and Exchange Commission’s skepticism about coin offerings, Kasikornbank is proceeding cautiously during this time of “healthy expansion.”
Expanding Services and Settling Transactions
While some banks are hesitant about coin offerings, several institutions are gradually integrating blockchain technology into their services. JPMorgan allows select clients to settle transactions using its JPM Coin network 24/7. Other banks such as Morgan Stanley, Citigroup, and Societe Generale are building infrastructure for fast settlements of tokenized assets.
Kasikornbank’s Approach to Coin Offerings
One potential challenge for coin offerings is the settlement of transactions. Kasikornbank’s blockchain division could handle client transactions, while its custody business could hold tokens for buyers and sellers. Another obstacle could be the requirement for participating companies to undergo anti-money laundering and know-your-customer checks, potentially excluding the decentralized finance industry.
Thailand Competing in the Digital Asset Space
Thailand joins Hong Kong, Japan, Singapore, and the European Union in vying for digital asset flows. Sygnum Bank in Singapore recently launched a crypto brokerage and custody business, while Hong Kong plans to expand its regime to embrace tokenization further.
Hot Take: Kasikornbank’s Push for Token Sales Signals Growing Confidence in Digital Assets
Kasikornbank’s development of a digital asset ecosystem and its support for token sales demonstrate a growing confidence in the potential of digital assets as a fundraising tool. By advising clients on issuing tokens instead of traditional methods like loans or equity sales, the bank aims to create a cost-efficient platform for companies to raise capital. While other countries and institutions remain cautious about coin offerings, Kasikornbank’s stance highlights Thailand’s eagerness to embrace digital assets and blockchain technology.
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