Thailand’s prominent financial institution, Kasikornbank, commonly known as KBank, is venturing into the cryptocurrency sector through its acquisition of a significant stake in the local crypto exchange, Satang.
This strategic move involves the purchase of 97% of shares in Satang’s operator, as revealed in an official announcement posted on the Stock Exchange of Thailand (SET) website on October 30th.
Kasikornbank has valued the acquisition at 3.7 billion Thai baht, equivalent to $103 million.
This transaction is being executed through KBank’s recently established subsidiary, Unita Capital, which specializes in investments within the digital asset industry.
Upon completion of the acquisition, Satang Corporation will undergo a rebranding and be known as Orbix Trade Company Limited.
Kasikornbank’s foray into the crypto domain will comprise three key divisions: Orbix Custodian, a secure custody platform; Orbix Invest, a venture arm; and Orbix Technology, dedicated to blockchain technology development.
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Satang holds a prominent position in Thailand’s cryptocurrency landscape, offering services such as a cryptocurrency exchange and other digital asset-related solutions.
The founder of Satang, Poramin Insom, is renowned for launching Firo (formerly Zcoin), a cryptocurrency focused on privacy.
Poramin Insom confirmed the acquisition by Kasikornbank on October 30th via Facebook, expressing his continued commitment to the company and its future.
He also revealed that Satang operates other businesses, including Satang Technology, a blockchain service platform, and Satang Space, a space-related enterprise.
This development follows closely on the heels of KBank’s September 2023 launch of a $100 million fund aimed at investments in Web3, fintech, and artificial intelligence.
KBank stands as Thailand’s second-largest lender by assets, trailing only behind Bangkok Bank.
According to data from the SET, the largest shareholder of KBank is Thai NVDR Company Limited, with the Stock Exchange of Thailand owning a substantial 99.9% of NVDR’s shares.
Kasikornbank’s entry into the cryptocurrency sector through the acquisition of Satang signifies a significant step in the evolution of the financial landscape in Thailand, bridging the traditional banking sector with the rapidly expanding digital asset market.
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