Thailand’s Kasikornbank Pcl, the country’s second-largest bank, is developing a digital-asset ecosystem to provide innovative funding routes for companies, according to a Bloomberg report.
This move includes the October acquisition of the licensed digital-asset exchange Satang Corp, marking a rare instance of a major lender purchasing a crypto trading platform. Kasikornbank is also focusing on blockchain technology and custodial services for virtual tokens.
Kasikornbank’s co-president, Pipit Aneaknithi, revealed in a Bloomberg interview that the bank is advising some clients on token issuance for fundraising.
Emphasizing the potential and seriousness in developing a cost-efficient digital-asset ecosystem, Pipit sees this as an alternative to traditional fundraising methods like loans or share sales, with the possibility of companies offering tradable tokens that yield returns.
The Thai business sector is reengaging with digital assets, encouraged by a supportive stance from Prime Minister Srettha Thavisin’s government towards blockchain technology.
This includes plans to use digital ledgers for a $14 billion cash handout program. However, the sector is also mindful of global risks and regulatory challenges in the crypto space, as highlighted by recent developments like Binance’s $4.3 billion penalty in the US for anti-money laundering and sanctions violations.
Kasikornbank plans to navigate this complex environment cautiously, aligning with regulations and taking note of the global trend where jurisdictions like Hong Kong, Singapore, Dubai, and the European Union are aspiring to become digital-asset hubs.
In contrast, the US Securities and Exchange Commission is taking a more stringent approach towards the crypto industry, citing concerns about fraud and non-compliance.
Major global financial institutions like JPMorgan Chase & Co, HSBC Holdings Plc, and Franklin Templeton are gradually integrating blockchain-based systems, indicating a cautious but growing acceptance of digital assets in mainstream finance.
With over 70 years of operation in Thailand and a presence in nine countries, Kasikornbank is not just a commercial banking giant but also a significant player in securities, financial technology, and related sectors.
Its ambition to become the “Main Bank” for all customer segments is supported by a comprehensive financial network offering diverse services ranging from banking to auto financing and financial advisory.