Siam Commercial Bank, one of the largest banks in Thailand, has acquired a 51% stake in the cryptocurrency exchange. The bank’s CEO said the acquisition would help the bank “create new long-term growth value amid a new financial world”.
A major Thai bank has become a major shareholder in the cryptocurrency exchange
Thailand’s oldest bank, Siam Commercial Bank (SCB), announced Tuesday that its subsidiary, Siam Commercial Securities Company Limited (SCBS), is acquiring a 51% stake in local crypto exchange Bitkub for 17.85 billion baht ($536 million). The Savings Credit Bank is the fourth largest bank in the country by assets.
The acquisition will help the SCB group “create new long-term growth value amidst a new financial world,” CEO Arthid Nantawitaya said, adding:
In the past two years, the digital asset industry, one of the financial industries of the future world, has grown rapidly, and it can grow even more in the long run.
The transaction is expected to be completed by the first quarter of 2022, pending regulatory approval from relevant agencies, such as the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC).
Bitkub Founder and CEO Jirayut Srupsrisopa commented:
We needed to take Bitkub to the global stage, so we turned to a strong partner like SCB to help us achieve our goal faster and more sustainably.
Several other Thai banks and financial institutions have made their way into crypto assets.
In August, Bank Ayudhya participated in a $41 million investment round in Thai crypto exchange Zipmex. One of the investors in the exchange is the co-founder of Facebook Eduardo Saverin, B Capital Group.
Another major bank in Thailand, Kasikornbank, launched a digital token offering service earlier this year. Some companies, such as financial advisory firm Brooker Group, have made cryptocurrencies, such as bitcoin, a part of their investment strategies.
What do you think of a large Thai bank taking a 51% stake in a cryptocurrency exchange? Let us know in the comments section below.
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