The cryptocurrency market is marking rapid growth worldwide but Asia-Pacific is beating the rest in terms of crypto adoption. Financial institutions and banking firms in these regions are looking to take advantage of the opportunity. One of the leading banks in Thailand is seen moving ahead with the acquisition of a lion’s share in a regional cryptocurrency exchange, Satang.
Thailand’s Kasikornbank, commonly referred to as KBank, has made a significant move into the cryptocurrency industry with the acquisition of a majority stake in the local crypto exchange Satang. The bank secured a 97% stake in Satang, as confirmed in an announcement published on the Stock Exchange of Thailand (SET) website on October 30th.
The acquisition is valued at a substantial 3.7 billion Thai baht, equivalent to approximately $103 Million. Kasikornbank executed the transaction through its newly established subsidiary, Unita Capital, which specializes in investments within the digital asset sector.
Satang is a major player in Thailand’s cryptocurrency landscape, operating as a prominent crypto exchange and offering various digital asset services. Poramin Insom, the founder of the Thai crypto exchange, is renowned for his role in launching the privacy-focused cryptocurrency Firo, formerly known as Zcoin.
Poramin Insom himself took to Facebook on October 30 to confirm the acquisition by Kasikornbank, stating, “I’ve been at Satang since 2017 until now, six years have passed. Currently, Satang on the trading board has already exited according to the news. And there should be an official announcement soon.”
He also highlighted the crypto firm’s involvement in other areas, including the blockchain service platform Satang Technology and space-related ventures under Satang Space.
Crypto Exchange Acquisition Marks Foray in the Market
Following this strategic acquisition, Satang Corporation will undergo a name change to Orbix Trade Company Limited. Kasikornbank’s crypto division will now consist of three key segments: Orbix Custodian, a custody platform for digital assets; Orbix Invest, the bank’s venture arm; and Orbix Technology, a blockchain technology development unit.
This move by Kasikornbank is significant and follows closely on the heels of their launch of a $100 million fund in September 2023, targeting investments in Web3 technologies, fintech, and artificial intelligence.
The bank’s strategic expansion into the cryptocurrency sector cements its position as one of Thailand’s key financial players, with reports indicating it is the country’s second-largest lender by assets, following closely behind Bangkok Bank.
Kasikornbank’s foray into cryptocurrency underscores the evolving landscape of the financial industry, with traditional banking institutions increasingly recognizing the significance of digital assets and blockchain technology.
As the cryptocurrency market continues to grow, this acquisition positions KBank as a notable contender in the burgeoning crypto ecosystem.
