Thailand's second largest bank, Kasikorn Bank, widely known as K-Bank, has acquired a 97% stake in the parent company of the established Satang crypto exchange.
This strategic acquisition comes as K-Bank intensifies its efforts in the cryptocurrency sector, aiming to offer a comprehensive suite of crypto services that comply with Thailand's regulatory framework.
K-Bank Acquires Majority Stake for $102 Million
The deal, worth 3.705 billion Thai baht (around IDR 1.6 Trillion), was implemented through a newly established K-Bank subsidiary known as Unita Capital, Thailand Posts reported.
Unita Capital holds a specific mandate to invest in digital asset companies, in line with K-Bank's commitment to expand its presence in the digital asset and cryptocurrency markets.
After the transaction is completed, Satang will undergo a rebranding process to become Orbix.
The transformation signals 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 Launches $100 Million Fund Dedicated to Web3 Investments
The bank's venture into the crypto sector comes after it recently launched a $100 million (approximately IDR 1.5 trillion) fund dedicated to investments in web3, fintech and artificial intelligence.
K-Bank's rival, Siam Commercial Bank (SCB), is also actively pursuing opportunities in the web3 and cryptocurrency domains, indicating the growing importance of these areas in Thailand's financial landscape.
Udomsak Rakwongwan, a professor at Kasetsart University and co-founder of FWX.finance, a company in which K-Bank invested, stated that K-Bank has obtained a crypto exchange license and is actively pursuing additional licenses for crypto-related activities in Thailand.
Rakwongwan highlights 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.
Previously, Thai energy giant Gulf joined forces with Binance through the Gulf Innova fund to build a regulated local version of the exchange in the Thai market.
In a statement to local media, K-Bank expressed its ambition to capture a 20% share of the crypto market in Thailand by 2024.