Shalini Nagarajan

Kasikornbank, also referred to as K-Bank, on Monday announced its acquisition of a majority stake in the parent firm of local crypto exchange Satang.



In a filing to the Stock Exchange of Thailand, K-Bank President Pipit Aneaknithi disclosed that the acquisition, worth 3.7 billion Thai baht ($102.8 million), was made through the bank’s fully-owned subsidiary, Unita Capital.&nbsp;



Following the takeover, Satang will renamed to Orbix Trade Company Limited, the <a href="https://www.kasikornbank.com/en/IR/FinanInfoReports/LetterToSET/20231030_UnitaCapital_EN.pdf">filing</a> showed.



Operating in Thailand since 2017, Satang claims to be the country&#8217;s longest-standing crypto exchange.



According to the filing, Unita Capital has also established three new subsidiaries: Orbix Custodian for digital asset custody, Orbix Invest for digital asset fund management and Orbix Technology &amp; Innovation Company Limited for blockchain infrastructure development.



K-bank ranks as Thailand&#8217;s fourth-largest bank in terms of assets, <a href="https://asia.nikkei.com/Companies/Kasikornbank-Public-Co.-Ltd">per</a> Nikkei Asia.&nbsp;



Established on June 8, 1945, the bank operates in commercial banking, securities, among other sectors.



In 2003, it transitioned from its former English name, Thai Farmers Bank, to its current name, mirroring its Thai pronunciation.&nbsp;



With a presence in over 1,000 locations domestically, the bank also has overseas branches, primarily in China.



The bank’s crypto exchange acquisition comes about a month after it launched a $100 million tech venture fund focused on artificial intelligence, Web3 and deep tech startups.



Meanwhile, its competitor, Siam Commercial Bank (SCB), established a blockchain and digital asset subsidiary, SCB 10X, in early 2021, <a href="https://www.ledgerinsights.com/kasikornbank-web3-vc-venture-fund/">according</a> to Ledger Insight.



Shortly after, SCB initiated a $600 million joint venture, the Global Disruptive Technology Venture Capital Fund, and rebranded the parent company as SCBx. 



SCB further pursued an over $500 million acquisition for a majority share in Thailand-based exchange Bitkub, but <a href="https://www.reuters.com/markets/deals/thai-lender-scbx-scraps-500-mln-acquisition-crypto-exchange-bitkub-2022-08-25/">had to back out</a> when local authorities called for changes from the exchange.



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Thailand’s 4th-largest bank buys $103M stake in crypto exchange

Ben Strack

<div id="highlights-block_628e9650a4cdf" class="highlights">
 <ul>
 <li>Lagged repricing keeps bank more cautious on private equity, private debt and real estate, according to a JPMorgan report</li>
 <li>There’s little evidence of crypto venture funding drying up after Terra’s collapse, bank analysts say</li>
 </ul>
 
</div>



Digital assets have replaced real estate as JPMorgan’s “preferred alternative asset class,” the bank said in a report Wednesday.&nbsp;



Public markets have already priced in significant recession risks, and digital assets have re-priced, following the collapse of TerraUSD (UST), according to JPMorgan analysts.&nbsp;



An algorithmic stablecoin designed to maintain a one-to-one peg to the US dollar, UST traded around 9 cents Wednesday afternoon.&nbsp;



“A potential lagged repricing keeps us more cautious on private equity, private debt and real estate over the coming quarters,” analysts wrote. “We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”



The analysts’ fair value for bitcoin remained unchanged at roughly $38,000, “implying significant upside for digital assets from here.”



Bitcoin was trading at about $29,700 at 4 p.m. ET on Wednesday, <a href="https://www.coingecko.com" target="_blank" rel="noreferrer noopener">according to Blockworks data</a>.



Though the Terra crash has soured sentiment among investors, JPMorgan analysts said there have been relatively limited spillovers to other stablecoins and DeFi more broadly.&nbsp;



Venture capital funding in the crypto space will be a key metric to watch, they added. Of the $25 billion of venture capital funding so far in 2022, nearly $4 billion came after Terra’s crash.&nbsp;&nbsp;&nbsp;



“If VC funding dries up from here as a result of the loss of confidence from the collapse of Terra’s ecosystem, then a return to the long winter of 2018/2019 would look more likely for crypto markets,” analysts wrote. “Thus far there is little evidence of VC funding drying up post Terra’s collapse.”



JPMorgan <a href="https://cms.blockworks.co/jpmorgan-chase-strategically-invests-in-blockchain-focused-trm-labs/" target="_blank" rel="noreferrer noopener">made a strategic investment</a> in blockchain intelligence company TRM Labs in February.&nbsp; Earlier that month, the company <a href="https://cms.blockworks.co/jpmorgan-enters-the-metaverse-with-virtual-decentraland-lounge/" target="_blank" rel="noreferrer noopener">unveiled a virtual lounge</a> in blockchain-based world Decentraland. The bank said in a report at the time that the metaverse has a market opportunity of $1 trillion in yearly revenue as creators increasingly turn to Web3 to monetize their work.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



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