Kasikorn Bank secures a 97% stake in Satang’s parent company for $102.8 million, boosting its presence in the digital asset market.
With its most recent acquisition of a 97% share in the parent company of the regional cryptocurrency exchange Satang, Kasikorn Bank (K-Bank) of Thailand increased its footprint in the digital asset market, according to Coindesk. The agreement was signed for a total estimated value of 3.705 billion Thai Baht, or $102.8 million.
Securing the Crypto Market in Thailand
Since 2017, Satang has functioned as a cryptocurrency exchange within the nation, providing a range of services such as custody, staking, and cryptocurrency payments. Coinmarketcap.com indicates that the exchange’s spot trading volume in the last 24 hours was about $430,000, which is far less than what it looks to be.
K-Bank completed the transaction through Unita Capital, a company it established with the express purpose of investing in cryptocurrency startups. In addition, the Thai bank created a $100 million investment fund with a web3, fintech, and AI focus. Furthermore, K-Bank stated its goal to own 20% of the Thai cryptocurrency industry by 2024 in a statement distributed to local media.
After the acquisition transaction closes, the new owner will rename Satang as Orbix and add three new subsidiaries: Orbix Custodian, Orbix Invest, a manager of digital asset funds, and Orbix Technology, a developer of blockchain technology.
Thai Banks Support Cryptocurrency
Traditional financial institutions in Thailand are strong supporters of the cryptocurrency business. K-Bank’s competitor, Siam Commercial Bank (SCB), is also investing in the cryptocurrency market. Furthermore, Bitkub, the biggest cryptocurrency exchange in Thailand with a $22.3 million daily volume, was to be acquired by SCB. However, the deal was abandoned last year due to unresolved regulatory concerns. Bitkub received several warnings from the Thai authorities along with steep fines.
In the meantime, regulations governing cryptocurrency exchange operations are becoming more stringent in Thailand. Earlier this year, the nation outlawed cryptocurrency loan services and required risk disclosures in all advertising and when promoting cryptocurrency trading.
