The high adoption of crypto assets in Thailand has inspired vital financial institutions to diversify their product offering. On Monday, October 30, Kasikornbank, the second largest bank in Thailand, signed a merger and acquisition deal with a local crypto exchange, Satang.
The M&A report demonstrated that the Kasikornbank will obtain a significant share of Satang. The report revealed that Kasikornbank closed the M&A deal at 3.7 billion Thai baht, equating to $103 million.
Kasikornbank Acquires Satang at $103M
The bank confirmed that it will own 97% of Satang shares. Kasikornbank has mandated its affiliate companies, KBank and Unita Capital, to facilitate the transaction. The acquisition of Satang will enable Kasikornbank to expand its offering in the crypto sector.
The report revealed that after the closure of the acquisition deal, Satang would be renamed to Orbix Trade Company Limited. The rebranding of Satang aims at optimizing the Kasikornbank operation in the crypto sector.
According to the announcement, the Kasikornbank will have three main divisions, namely the Orbix Custodian, Orbix Invest, and Orbix Technology. The three additional divisions will support Kasikornbank to expand its custodial services and venture capital offering.
Beyond this, the acquisition will support Kasikornbank to invest in the development of blockchain technology. The acquisition will also position Kasikornbank at a competitive edge since Satang has gained dominance in the crypto industry.
Factors Contributing to Fierce Competition in Thailand
As of the press, Satang ranks among the best-performing crypto assets in Thailand with a sustainable customer base. The report indicates the popularity of Satang spurred due to its distinctive product offering.
Besides the product, the Thai crypto exchange recruited dedicated employees to support Satang in attaining its objective.
A review of the Satang workforce demonstrates that most employees have extensive experience in crypto and blockchain technology. As such, the founder of Satang Poramin Insom has been an active crypto investor.
Insom is also the owner of the Firo crypto exchange. In a Facebook post dated October 30, Insom confirmed that Kasikornbank acquired Satang. The executive described Satang’s six-year journey as a success.
Insom informed the public that the successful acquisition by Kasikornbank has compelled Satang to take decisive actions to exit the trading board. The executive confessed that the Satang community will be updated according to the imminent changes.
The executive noted that Kasikornbank acquired Satang and its affiliate companies, including Satang Technology and Satang Space. Insom clarified that despite the change, Satang will continue to operate uninterruptedly.
He admitted that the acquisition had created mixed feelings among the customers. The executive added that some customers might skeptical on the future of Satang Exchange.
Kasikornbank to Offer Crypto Services
Reportedly, the acquisition of Satang aligns with Kasikornbank’s latest investment in the digital economy. Last month, the Thai’s second-largest bank introduced a funding program dubbed KXVC to support the expansion of emerging technologies.
The September report illustrated that the Kasikornbank plans to generate $100 million to support the expansion of artificial intelligence (AI), Web3, and cybersecurity in the Asian Pacific region.
Besides the proposed investment in crypto, Kasikornbank anticipates gaining dominance in the crypto sector with the Satang acquisition. According to the announcement, the Kasikornbank projects to dominate 20% of the Thai crypto market by next year.
A statement from Udomsak Rakwongwan, a lecturer from the University of Kasetsart, revealed that the Kasikornbank plans to expand its crypto offering to outshine its top rival, Siam Commercial Bank (SCB).
The executive admitted that the Kasikornbank seeks to offer a complete suite of crypto products allowed in Thailand. The professor noted that Kasikornbank has obtained a license from the Thailand market regulators to operate as a regulated crypto exchange. Meanwhile, the Kasikornbank team is seeking approval for additional licenses to offer other crypto-related products.
Rakwongwan noted that the Thai market has endless opportunities for institutional clients. He believes the Thai crypto sector will become more competitive as more players migrate to the vibrant crypto industry.