April 19, 2024
Thailand's KBank Enters the Crypto Arena with Satang Acquisition
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Thailand’s KBank Enters the Crypto Arena with Satang Acquisition

In a significant move, Thailand’s Kasikornbank, commonly referred to as KBank, has made a foray into the cryptocurrency industry by acquiring a majority stake in the local cryptocurrency business Satang. The acquisition, amounting to 97% of shares, was officially announced on October 30, 2023, through the Stock Exchange of Thailand (SET).

Kasikornbank, one of the largest banks in Thailand, valued the transaction at 3.7 billion Thai baht, which equates to approximately $103 million. This acquisition was facilitated through K-Bank’s recently established subsidiary, Unita Capital, which is focused on investments in the digital asset sector.

As a result of this transaction, Satang Corporation, a major player in Thailand’s cryptocurrency sphere, is set to undergo a rebranding and will now operate under the name Orbix Trade Company Limited. Kasikornbank’s foray into the cryptocurrency sector will encompass three distinct divisions: Orbix Custodian, a custody platform; Orbix Invest, a venture arm; and Orbix Technology, a blockchain technology developer.

Satang Corporation, led by its founder Poramin Insom, has been a prominent player in Thailand’s cryptocurrency ecosystem, offering services such as cryptocurrency exchange and other digital asset-related offerings. Notably, Insom is renowned for his role in launching the privacy-focused cryptocurrency Firo (FIRO), formerly known as Zcoin.

In response to this acquisition, Poramin Insom took to Facebook to confirm the developments and provide his perspective. “I’ve been at Satang since 2017 until now, six years have passed,” Insom stated, emphasizing his continued commitment to the company.

“Currently, Satang on the trading board has already exited according to the news. And there should be an official announcement soon.”

Poramin Insom founder of Satang Corporation

He went on to reassure customers and partners, stating, “I still continue to do it without being affected. So I reported here. In case Satang’s corporate customers are shocked at what the existing services will be like in the future.”

The decision by Kasikornbank to venture into the cryptocurrency industry through the acquisition of Satang comes shortly after the bank’s launch of a $100 million fund in September 2023, dedicated to investments in Web3, fintech, and artificial intelligence. Kasikornbank is known as Thailand’s second-largest lender by assets, following only Bangkok Bank in terms of scale. Data from the SET indicates that Thai NVDR Company Limited is the largest shareholder of KBank, with the Stock Exchange of Thailand owning 99.9% of NVDR’s shares.

This strategic move underscores the increasing interest of traditional financial institutions in the potential of cryptocurrencies and blockchain technology. Kasikornbank’s acquisition of Satang marks a significant development in Thailand’s evolving financial landscape and highlights the growing convergence of traditional banking and the digital asset sector. The future holds promise for new possibilities and synergies as the worlds of traditional finance and cryptocurrency continue to intermingle.

Image: Wallpapers.com

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