KBank to create digital currency system
As mainstream lenders remain cautious about digital assets, Kasikornbank (KBank) is on a mission to create a digital-asset ecosystem, providing a groundbreaking funding route for companies.
KBank acquired the licenced digital-asset exchange Satang Corp in October. Notably, this acquisition marks a rare instance of an established lender stepping into the crypto trading platform domain. The rebranded Satang Pro platform, now named Orbix, is at the forefront of KBank’s revolutionary approach.
KBank is not merely testing the waters; it is strategically positioning itself in the digital realm. With dedicated divisions focusing on blockchain technology and custodial services for virtual tokens, KBank aims to redefine the financial landscape.
Co-president Pipit Aneaknithi affirmed the bank’s commitment.
“We’re advising some clients to issue tokens for fundraising. We see potential in this market. We’re serious about developing a digital-asset ecosystem that will be very cost-efficient compared with existing, traditional platforms.”
As the digital assets sector rebounds from a challenging 2022 market rout, Thai companies are once again exploring opportunities in the digital realm. KBank’s initiative aligns with the government’s openness to blockchain technology, exemplified by plans to use digital ledgers for a substantial 500-billion-baht digital cash handout.
The KBank co-president hinted at the advantages for companies, suggesting that issuing tokens could be more cost-effective than traditional methods such as loans or share sales. He envisions companies offering tradeable tokens that yield returns, a move that could transform fundraising dynamics, reported Bangkok Post.
Navigating the regulatory landscape with caution, Pipit assured that KBank will adhere to regulations.
“With the proper supervision being put in place in many countries, the time is ripe for healthy expansion.”
Globally, financial institutions in various jurisdictions, including Hong Kong, Singapore, Dubai, and the European Union, are looking to foster digital-asset hubs. However, the situation in the US remains uncertain, with the SEC cracking down on an industry it describes as rife with fraud and non-compliance.
