Kasikornbank (KBank), one of Thailand's foremost banks, has made a strategic move into the digital currency market by acquiring a 97% stake in Satang Corporation, an influential player in the Thai cryptocurrency sector. The acquisition, worth $103 million, was executed through Unita Capital, KBank's subsidiary that focuses on digital asset investments.
Following the acquisition, Satang Corporation will undergo a transformation to become Orbix Trade Company Limited. The rebranded entity will consist of three divisions: Orbix Custodian, which will concentrate on digital asset custody; Orbix Invest, which will focus on fund management; and Orbix Technology, dedicated to blockchain technology infrastructure.
The acquisition comes at a time when traditional financial institutions are showing increased interest in the crypto space. Despite facing civil sanctions over fabricated trading volumes last year, Satang Pro, established in 2017, continues to be a key player in Thailand's crypto landscape.
Poramin Insom, the founder of Satang and creator of the privacy-focused cryptocurrency Firo, confirmed the acquisition. He also assured that his other ventures such as Satang Technology and Satang Space would continue to operate.
The acquisition aligns with KBank's recent endeavors into tech innovation. In September 2023, KBank launched a $100 million fund targeting Web3, fintech, and AI sectors. This commitment to technological advancement mirrors their 2016 partnership with IBM (NYSE:IBM) and their ambitious plans for Orbix Trade Co.
Despite Siam Commercial Bank (OTC:SMUUY) (SCB) recently abandoning its acquisition of Bitkub due to regulatory concerns, KBank's investment into Satang Corporation indicates a continued interest from traditional financial institutions in the burgeoning crypto market.
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