Kasikornbank (KBank), Thailand’s fourth-largest bank, has announced the acquisition of a 97% stake in the prominent local cryptocurrency exchange, Satang Pro. This substantial investment, valued at $103 million, underscores KBank’s commitment to the evolving landscape of digital assets.
Through its subsidiary, Unita Capital, KBank executed the acquisition, significantly striding into the digital currency world. The move exemplifies KBank’s forward-thinking approach and its recognition of the growing influence of cryptocurrencies in the global financial market.
Established in 2017, Satang Pro has emerged as a cornerstone of Thailand’s cryptocurrency exchange landscape. It stands out as one of the few exchanges in the nation regulated by the Securities and Exchange Commission. Despite a hiccup in 2022, facing civil sanctions alongside four other exchanges for fabricated trading volumes, Satang Pro remains a pivotal player in the Thai crypto market.
Upon finalizing the acquisition, KBank has outlined ambitious plans for Satang Pro. The exchange will undergo a rebranding, emerging as “Orbix Trade Co. Ltd.” This transformation is part of KBank’s broader strategy to invest not only in the cryptocurrency sphere but also in cutting-edge technologies like Web3 and artificial intelligence.
Unita Capital, KBank’s subsidiary overseeing the acquisition, is poised to launch three pivotal divisions targeting the digital asset arena. Orbix Custodian is focused on premier digital asset custody with a capital of 100 million baht, while Orbix Invest operates as a digital asset fund manager with a similar capital. Meanwhile, Orbix Technology & Innovation Co. Ltd., with a capital of 260 million baht, is dedicated to advancing blockchain technology infrastructure, marking a substantial leap forward in blockchain innovation.
This move is not the first time KBank has demonstrated its dedication to cutting-edge technology. In 2016, the bank collaborated with the local unit of International Business Machines (IBM) to pioneer the application of blockchain technology in Thailand. This partnership was aimed at enhancing transaction speeds and cost efficiency.
The bank also introduced a new fund worth $100 million for AI, web3, and deep tech startups. As of June 2023, Kasikornbank was ranked among the top five largest banks in Thailand, boasting total assets approaching $120 billion.
The cryptocurrency market in Thailand is witnessing significant support from conventional financial institutions. Siam Commercial Bank (SCB), competitor of K-Bank, is actively venturing into the crypto space. SCB had initially agreed to acquire Bitkub, the largest crypto exchange in Thailand, with a daily trading volume of $22.3 million. However, the deal was abandoned last year due to unresolved regulatory concerns. The Thai regulatory authority issued multiple notices to Bitkub and imposed substantial fines as part of their oversight.