Kasikornbank (KBank) acquires a 97% stake in Satang, a Thai crypto business, for $103 million, signaling a strong interest in the digital asset industry.
Key Takeaways
- KBank acquires a 97% stake in Satang, a local crypto business, for $103 million.
- The acquisition is made through KBank’s new subsidiary, Unita Capital.
- Satang Corporation will change its name to Orbix Trade Company Limited.
- KBank’s crypto division will include Orbix Custodian, Orbix Invest, and Orbix Technology.
Thailand’s second-largest lender by assets, Kasikornbank (KBank), has taken a significant step into the world of cryptocurrency by acquiring a majority stake in the local crypto business Satang. The acquisition, which saw KBank acquire 97% of Satang’s shares, was announced on October 30 via the Stock Exchange of Thailand’s website.
Banks Into Crypto
The deal, valued at 3.7 billion Thai baht (approximately $103 million), is being executed through KBank’s newly established subsidiary, Unita Capital. This move aligns with KBank’s strategic focus on investing in the digital asset industry.
As part of the acquisition, Satang Corporation will undergo a name change to Orbix Trade Company Limited. KBank’s foray into the crypto space will involve three distinct divisions: Orbix Custodian, which will serve as a custody platform for digital assets, Orbix Invest, the bank’s venture arm, and Orbix Technology, dedicated to blockchain technology development.
Satang Corporation is a prominent player in Thailand’s cryptocurrency landscape, offering a range of digital asset services alongside its crypto exchange. Notably, Satang’s founder, Poramin Insom, is renowned for his involvement in the development of the privacy-focused cryptocurrency Firo (formerly known as Zcoin).
🇹🇭 Thailand’s Kasikornbank, also known as KBank, acquired 97% of shares in the operator of the local crypto business @SatangOfficial_. https://t.co/5e9UruGsCy
— Cointelegraph (@Cointelegraph) October 30, 2023
Insom confirmed the acquisition on October 30 via a Facebook post, highlighting Satang’s diverse portfolio of companies, which includes Satang Technology, a blockchain service platform, and Satang Space, a space-related venture.
KBank’s move into the cryptocurrency sector follows the recent launch of a $100 million fund in September 2023, targeting investments in Web3, fintech, and artificial intelligence. The bank’s prominence in Thailand’s financial landscape, as the second-largest lender by assets, reinforces its strategic position in the evolving digital economy.
To Conclude
KBank’s acquisition of Satang marks a significant milestone in the convergence of traditional banking and the burgeoning crypto industry in Thailand. With the creation of Orbix Trade Company Limited and the establishment of multiple crypto-focused divisions, KBank is positioning itself as a key player in the country’s digital asset ecosystem. This strategic move aligns with the broader trend of financial institutions embracing cryptocurrencies and blockchain technology, signaling a promising future for the intersection of finance and digital assets in Thailand.
