In a strategic move into the world of digital currencies, Kasikornbank (KBank), one of Thailand’s leading banks, has acquired a significant 97% stake in Satang Corporation, a prominent player in the Thai cryptocurrency sector. This $103 million acquisition was executed through Unita Capital, a subsidiary of KBank dedicated to digital asset investments.
Following this acquisition, Satang Corporation is set to undergo a comprehensive transformation, rebranding itself as Orbix Trade Company Limited. The restructured entity will consist of three divisions: Orbix Custodian, focused on digital asset custody; Orbix Invest, specializing in fund management; and Orbix Technology, dedicated to blockchain technology infrastructure.
The timing of this acquisition is noteworthy, as traditional financial institutions are increasingly expressing interest in the cryptocurrency space. Despite facing civil sanctions in the previous year due to allegations of fabricated trading volumes, Satang Pro, established in 2017, remains a significant player in Thailand’s cryptocurrency landscape.
Poramin Insom, the founder of Satang and the mastermind behind the privacy-centric cryptocurrency Firo, has confirmed the acquisition. He has also reassured stakeholders that his other ventures, including Satang Technology and Satang Space, will continue their operations.
This acquisition aligns with KBank’s recent focus on technological innovation. In September 2023, KBank launched a $100 million fund specifically targeting the Web3, fintech, and AI sectors. This commitment to technological advancement is consistent with KBank’s 2016 partnership with IBM (NYSE: IBM) and their ambitious plans for Orbix Trade Co.
While Siam Commercial Bank (OTC: SMUUY) (SCB) recently abandoned its Bitkub acquisition due to regulatory concerns, KBank’s investment in Satang Corporation underscores the sustained interest of traditional financial institutions in the ever-evolving crypto market.
