Thailand's Kasikorn Bank, commonly known as KBank, has completed the acquisition of 97% of the shares in the parent company of the Satang crypto exchange.
Satang, a cryptocurrency exchange with presence in Thailand since 2017, has been valued at 3.705 billion Thai baht ($102.8 million) in this transaction.
The acquisition was executed through a newly-formed KBank subsidiary named Unita Capital, focusing on investments in digital asset companies.
Upon the completion of this deal, Satang will undergo a rebranding to become Orbix.
The new entity will introduce three additional subsidiaries: Orbix Custodian, Orbix Invest (a digital asset fund manager), and Orbix Technology, which is dedicated to blockchain technology development.
KBank's move follows its recent launch of a $100 million fund, targeting web3, fintech, and AI.
KBank's rival, Siam Commercial Bank (SCB), is also aggressively expanding its presence in the web3 and crypto sectors.
First established in 1945, Kasikorn Bank (KBank) is one of the top 4 banks in Thailand according to Statista’s statistics as of January 2023.
It stands second, just right after Bangkok Bank in terms of its total assets.
According to Satang’s “About Us” page on their website, they claim to be “one of the leading experts in the field of cryptocurrency in Thailand”.
The company’s founder previously established Zcoin — the privacy-focused cryptocurrency.
With Zcoin, they cooperated with the Thai government, aiming for it to facilitate digital transactions and promote digital asset security.
Udomsak Rakwongwan, a professor at Kasetsart University and co-founder of FWX.finance, a company in which KBank has invested in, noted,
"KBank is intensifying its efforts in the cryptocurrency sector, positioning itself alongside SCB. They are keen on offering a full spectrum of crypto services permitted in Thailand."
Rakwongwan also mentioned that KBank recently secured a crypto exchange license and is actively pursuing the remaining licenses needed to operate in the Thai crypto market.
Notably, the Thai crypto market enjoys substantial institutional support.
In addition to SCB and KBank, the Thai energy giant Gulf has a joint venture with Binance through its Gulf Innova fund, aiming to establish a regulated, local version of the exchange in the market.
Rakwongwan stated,
"The cryptocurrency business in Thailand is set to become more competitive as major players stake their claim. With the owner of Gulf being one of Thailand's richest individuals, the dynamics are bound to shift. The vast capital and influence of these giants might pose survival challenges for smaller players in the field."
KBank has expressed its ambition to capture 20% of the crypto market share in Thailand by the year 2024.
It seems that Thailand has been ramping up on their efforts that drive towards a cryptocurrency-friendly environment, with not just KBank but also SCB.
As the second biggest bank in Thailand, this boosts the legitimacy of cryptocurrency, especially after news of Thailand-based cryptocurrency exchange, Zipmex filing for bankruptcy in July 2022.
With the backing of traditional banks moving towards such adoption, this is a positive sign for the industry in Thailand.
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