Thailand’s second largest bank, Kasikorn Bank, widely known as K-Bank, has acquired a 97% stake in the parent company of established cryptocurrency exchange Satang.
This strategic acquisition comes as K-Bank steps up its efforts in the cryptocurrency sector, aiming to offer a wide range of crypto services that comply with Thailand’s regulatory framework.
K-Bank acquires majority stake for $102 million
The deal, valued at 3.705 billion Thai baht (approximately $102.8 million), was executed through a newly created K-Bank subsidiary known as Unita Capital. Thailand publications informed.
Unita Capital has a specific mandate to invest in digital asset companies, aligning with K-Bank’s commitment to expand its presence in the digital asset and cryptocurrency market.
Once the transaction closes, Satang will undergo a rebranding process, emerging as Orbix.
This transformation signifies a broader shift in K-Bank’s digital strategy, as Orbix will include three additional subsidiaries: Orbix Custodian, Orbix Invest (a digital asset fund manager) and Orbix Technology, a blockchain technology developer.
Thai Bank launched a $100 million fund dedicated to Web3 investments
The bank’s venture into the crypto industry comes after that of the bank recently launched a $100 million fund dedicated to investments in web3, fintech and artificial intelligence.
Notably, K-Bank’s rival Siam Commercial Bank (SCB) has also been actively pursuing opportunities in the web3 and cryptocurrency domains, indicating the growing importance of these areas in the Thai financial landscape.
Udomsak Rakwongwan, a professor at Kasetsart University and co-founder of FWX.finance, a company in which K-Bank has invested, expressed that K-Bank has obtained a crypto exchange license and is actively seeking additional licenses for activities related to cryptography. Thailand
Rakwongwan highlighted the distinctive nature of the Thai market, which enjoys substantial institutional support and presents a unique set of opportunities in the crypto and digital asset space.
Earlier, Thailand’s energy giant Gulf joined forces with Binance through its Gulf Innova fund establish a local regulated version of the exchange in the Thai market.
In a statement to local media, K-Bank revealed its ambition to capture a 20% share of the crypto market in Thailand by 2024.