Key takeaways:
- Thailand’s Kasikorn Bank said it had purchased 97% of the parent business of the Satang cryptocurrency exchange.
- K-Bank is “actively pursuing the remaining licenses” for cryptocurrency in Thailand, having just obtained a license to operate as a crypto exchange.
Thailand’s Kasikorn Bank, popularly referred to as K-Bank, said that it has purchased 97% of the parent business of the Satang cryptocurrency exchange, which has been operating there since 2017.
A document states that the transaction was completed through Unita Capital, a new K-Bank subsidiary with the goal of investing in businesses that provide digital assets, and has a valuation of 3.705 billion Thai baht ($102.8 million), as reported by CoinDesk.
After the transaction is completed, Satang will become Orbix. Three further companies will be part of the new company: Orbix Custodian, a blockchain technology developer; Orbix Invest, a digital asset fund manager; and Orbix Technology.
The news follows the launch of a $100 million fund by K-Bank with a focus on Web3, FinTech, and AI one month ago. Siam Commercial Bank (SCB), a competitor of K-Bank, is likewise getting heavily involved in web3 and cryptocurrency.
K-Bank is putting more effort into the cryptocurrency space and aligning itself with SCB. The co-founder of FWX.finance, which K-Bank invested in, and a lecturer at Kasetsart University, Udomsak Rakwongwan, is eager to provide the whole range of cryptocurrency services that are legal in Thailand.
According to Rakwongwan, K-Bank is “actively pursuing the remaining licenses” for cryptocurrency in Thailand, having just obtained a license to operate as a crypto exchange. Additionally, he pointed out that the Thai market is distinct due to its strong institutional backing.
In addition to SCB and K-Bank, the massive Thai oil company Gulf has a partnership with Binance via its Gulf Innova fund to launch a localized, regulated version of the exchange.
As significant competitors stake their claims, the cryptocurrency market in Thailand is expected to become more competitive, he said. He continued, saying:
“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.”
In a statement given to the local press, K-Bank stated its objective to become the 20% market leader in Thailand by 2024 for cryptocurrencies.
