Kasikornbank (KBank) has acquired Satang Corporation, a local cryptocurrency trading board, as it expands to digital asset operations under a subsidiary.
KBank, the country’s second-largest lender by total assets, informed the Stock Exchange of Thailand (SET) on Monday the bank’s board of directors approved establishing Unita Capital Co Ltd to invest in companies that operate digital asset businesses.
The Bank of Thailand allowed the bank to change the structure of its financial businesses.
KBank was approved by the central bank to set up Unita Capital in March 2022 with registered capital of 3.7 billion baht, 100% held by KBank, investing in companies that operate digital asset businesses, according to the bank’s statement to the SET.
Unita Capital’s board approved the establishment of and investment in three new companies — Orbix Custodian Co Ltd, Orbix Investment Co Ltd and Orbix Technology and Innovation Co Ltd — with 100% held by Unita Capital.
Orbix Custodian was approved to be set up in March 2022 with registered capital of 100 million baht as a digital asset custodial service provider.
Orbix Investment was approved in May 2023 with registered capital of 100 million baht as a digital asset fund manager.
However, Orbix Custodian and Orbix Invest are in the process of preparing to obtain a business licence.
Orbix Technology and Innovation was approved in July 2023 with registered capital of 260 million baht to develop blockchain technology infrastructure.
In addition, on Oct 27, Unita Capital purchased a 97% share of Satang Corporation Co Ltd, the provider of the digital asset trading platform Satang Pro to conduct business as a digital asset trading centre.
KBank approved Unita Capital to acquire a 97% share of Satang Corporation on Oct 27 and Satang will be renamed Orbix Trade Co Ltd in the next step.
A source at KBank Group who requested anonymity said the bank is interested in entering the digital assets business in response to demand for financial services from some customer segments.
However, the bank did not set specify the targets of the business including revenue and market share.
“For the initial stage, KBank will focus on building the confidence of customers and investors, especially in the security system to ensure risk control of the business,” the source said.
The source said the bank acquired Satang Pro in order to obtain a cryptocurrency exchange licence, while the share price of Satang Pro is considered reasonable.
Poramin Insom, founder of Satang Pro, posted on Facebook that Satang has already exited the trading board and an official announcement can be expected soon.
However, KBank’s other companies such as Orbix Technology and Innovation still continue operation.
Mr Poramin said the advantages of commercial banks in terms of funding and customer base will enhance the competitiveness of the country’s digital asset industry.
The top digital asset and cryptocurrency exchange platform in Thailand is Bitkub, which has a 90% market share.
SCB X, a holding company of Siam Commercial Bank, was the first banking group to enter the digital asset business via a subsidiary company, InnovestX Securities, and also obtained a business licence.
KBank was the second bank to invest in digital assets.
At the end of the year, Binance Group, the world’s largest cryptocurrency exchange by trading volume, is expected to set up a crypto exchange with Thailand’s Gulf Energy Development.
Sanjay Popli, chief executive of Cryptomind Group, said next year competition in the digital assets sector will become more intense for both investment products and liquidity in trading.
He said he believes Bitkub will remain Thailand’s leading cryptocurrency platform, but with a dwindling market share as two new large players enter.
Cryptocurrency investment rebounded in October after the price of Bitcoin surged to nearly US$35,000, the highest level in 18 months, as there are signals a Bitcoin ETF could be listed in the US, being considered by the US Securities and Exchange Commission.