Kasikorn Bank Takes a Giant Leap into Crypto with Satang Acquisition

In a transformative move, Kasikorn Bank (K-Bank), one of Thailand’s leading banks, has decisively entered the digital asset space through its acquisition of a 97% stake in Satang, a prominent local cryptocurrency exchange. Valued at 3.705 billion Thai baht ($102.8 million), this acquisition signifies a major milestone in K-Bank’s journey to dominate the Thai digital asset market.

Established in 2017, Satang has made its mark in the Thai cryptocurrency landscape by offering a variety of services including custody, staking, and crypto payments. Despite its relatively modest spot trading volume, sitting at approximately $430,000 in the last 24 hours, the acquisition provides K-Bank with a solid platform to expand its digital asset services.

Unita Capital, a K-Bank subsidiary, facilitated this strategic acquisition, underscoring K-Bank’s commitment to the digital future. This move is in line with the bank’s broader agenda, which includes launching a $100 million investment fund focused on pivotal sectors such as Web3, fintech, and artificial intelligence (AI).

K-Bank is not just expanding its digital asset services; it aims to capture a substantial share of the Thai crypto market, targeting a 20% market share by 2024. This ambition showcases K-Bank’s determination to be a leader in Thailand’s digital transformation.

Post-acquisition, Satang will undergo a rebranding, emerging as Orbix, and introduce three new subsidiaries: Orbix Custodian, Orbix Invest, and Orbix Technology. These entities will empower K-Bank to offer an extensive suite of digital asset services to its diverse customer base.

The growing Thai crypto market has attracted attention from traditional financial institutions, despite challenges and tightening regulations. Earlier this year, Thailand implemented a ban on digital asset lending services and introduced stringent requirements for risk disclosures in crypto trading.

K-Bank’s entry into this space is indicative of the growing interest from traditional banks in the crypto market, even as regulatory challenges persist. In contrast, Siam Commercial Bank’s (SCB) attempted acquisition of Bitkub, Thailand’s largest crypto exchange, fell through due to regulatory concerns and imposed fines, highlighting the complex regulatory landscape in Thailand.

In conclusion, K-Bank’s strategic acquisition of Satang is a clear demonstration of its commitment to expanding its digital asset capabilities and ensuring a significant presence in the Thai market. With the introduction of Orbix and its subsidiaries, K-Bank is well-positioned to provide innovative digital asset solutions to meet the evolving needs of its customers.