Kasikorn Bank Acquires Majority Stake in Satang to Expand Digital Asset Services
Thailand’s Kasikorn Bank (K-Bank) has acquired a 97 percent stake in Satang, a local cryptocurrency exchange, for 3.705 billion Thai baht ($102.8 million). This move allows K-Bank to enter the rapidly growing Thai digital asset market and strengthen its position in the space. Satang, established in 2017, offers services such as custody, staking, and crypto payments. Although the exchange’s spot trading volume has been relatively modest, the acquisition provides K-Bank with a foundation to expand its digital asset services.
K-Bank Aims for 20% Market Share in Thai Crypto Market
K-Bank’s subsidiary, Unita Capital, executed the acquisition and was specifically established to invest in digital asset companies. This aligns with K-Bank’s broader strategy of launching a $100 million investment fund focused on web3, fintech, and AI. The bank aims to capture a significant portion of the Thai crypto market share, targeting a 20 percent share by 2024.
Satang Rebrands as Orbix and Expands Services
Following the acquisition, Satang will be rebranded as Orbix and introduce three additional subsidiaries: Orbix Custodian, Orbix Invest (a digital asset fund manager), and Orbix Technology (a blockchain technology developer). This expansion will enable K-Bank to offer a comprehensive suite of digital asset services to its customers.
Regulatory Challenges Faced by Traditional Banks
Traditional financial institutions in Thailand are increasingly investing in the crypto space. Kasikorn Bank’s rival, Siam Commercial Bank (SCB), had planned to acquire Bitkub, Thailand’s largest crypto exchange. However, the deal was canceled due to regulatory concerns and fines imposed by Thai authorities. The country has been tightening regulations surrounding crypto exchanges to protect investors and ensure market stability.
K-Bank Commits to Expanding Presence in Thai Market
Kasikorn Bank’s acquisition of Satang demonstrates its commitment to expanding its presence in the Thai market. With the rebranded entity Orbix and its subsidiaries, K-Bank aims to offer a wide range of digital asset services to meet the evolving needs of its customers.
Hot Take: Kasikorn Bank Makes Strategic Move with Satang Acquisition
Kasikorn Bank’s acquisition of a majority stake in Satang is a significant step towards strengthening its position in the digital asset space in Thailand. With this move, K-Bank aims to capitalize on the growing opportunities in the Thai crypto market and achieve a 20 percent market share by 2024. The rebranding of Satang as Orbix, along with the introduction of additional subsidiaries, will enable K-Bank to provide a comprehensive suite of digital asset services to its customers. Despite regulatory challenges faced by traditional banks in the country, K-Bank is committed to expanding its presence and meeting the evolving needs of the market.
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