Key Points:
- Kasikorn Bank to launch Thailand’s first licensed digital asset custodian, Orbix Custodian.
- The service is licensed by the Thai Ministry of Finance and regulated by the SEC.
- Operations are set to begin in early 2025.
- Kasikorn Bank’s increasing involvement in the cryptocurrency space.
- The development of related blockchain services and partnerships.
- Kasikorn Bank’s ventures into AI projects through its subsidiary, KBTG.
Kasikorn Bank Takes the Lead in Thailand’s Digital Asset Custody
In a significant move for Thailand’s digital economy, Kasikorn Bank, the second-largest bank in the country by asset size, has announced plans to establish Orbix Custodian, the first digital asset custodian in Thailand to be licensed by the Ministry of Finance. With oversight from the Securities and Exchange Commission (SEC), this new entity is expected to begin operations in early 2025. This announcement marks a notable development in Thailand’s evolving financial infrastructure, positioning the bank at the forefront of digital finance.
Thailand’s First Digital Asset Custodian: Orbix Custodian
Kasikorn Bank’s latest venture into the digital asset space demonstrates the institution’s commitment to embracing the future of finance. Orbix Custodian received its license on September 13 and will operate under the strict supervision of the Thai SEC. This custodian service aims to provide secure digital asset storage for both institutional and retail clients, addressing the growing demand for regulated and reliable custody solutions in Thailand.
The establishment of Orbix Custodian is expected to lay the groundwork for a more robust digital financial infrastructure in Thailand. Kasikorn Bank sees this initiative as a critical step in transforming Thailand into a digital economy hub, aligning with the government’s policy to modernize the financial sector.
Kasikorn Bank’s Continued Focus on Cryptocurrency
Kasikorn Bank has been actively involved in the cryptocurrency sector, and the launch of its digital asset custody service is the latest in a series of steps to strengthen its foothold. In a public statement, Pipit Aneaknithi, the president of Kasikorn Bank, emphasized the importance of this move, stating that it would help establish a solid foundation for the development of digital financial infrastructure and support the country’s transformation into a key player in the digital economy.
Through its subsidiary, Unita Capital, Kasikorn Bank fully owns and operates Orbix Custodian. Unita Capital also controls other entities, including Orbix Invest and Orbix Technology, further solidifying Kasikorn’s presence in the blockchain and digital asset space.
Orbix Technology and its Blockchain Solutions
Orbix Technology, another key player under Unita Capital, provides blockchain infrastructure services. One of the company’s significant projects is the Q Bond initiative, which was launched in early September. This project involved issuing bonds worth 500 million baht (approximately ＄15,359,290) on the Qualix blockchain. These bonds, which have a maturity of one year and a fixed interest rate of 2.38%, were issued in collaboration with Kasikorn Bank and Thailand’s state-owned oil and gas company, PTT. This partnership highlights the bank’s growing influence in integrating blockchain technology into traditional financial systems.
Before becoming part of Unita Capital, the trading platform operated by Orbix Technology was known as “Satan.” Following its acquisition in October 2023, the platform was rebranded to align with Kasikorn Bank’s broader blockchain strategy. This move showcases the bank’s efforts to innovate and bring blockchain solutions to mainstream finance in Thailand.
Orbix Invest and Digital Asset Management
Kasikorn Bank’s expansion into the digital asset space is not limited to custody services. In July 2023, Orbix Invest was established as a digital asset fund manager, offering a range of investment opportunities in the cryptocurrency market. This initiative is part of the bank’s broader strategy to cater to the growing interest in digital assets among its clients, particularly those looking to diversify their portfolios with blockchain-based investments.
As part of its customer loyalty program, Kasikorn Bank introduced Orbix Reward in early September 2023. This program allows customers to earn rewards after completing KYC (Know Your Customer) authentication, further incentivizing users to engage with the bank’s digital asset services.
Kasikorn Bank’s Venture into AI
Beyond its focus on digital assets, Kasikorn Bank is also making significant strides in the artificial intelligence (AI) sector. Through its subsidiary, Kasikorn Business Technology Group (KBTG), the bank has partnered with AI Singapore and Google Research to participate in the development of large language models (LLM) for Southeast Asian languages. This project, known as SEALD (Southeast Asian Languages in One Network Data), aims to create LLMs for languages such as Thai, Indonesian, Tamil, Filipino, and Burmese.
This collaboration was officially announced on September 24, 2024, although the project had been in development since March. The inclusion of KBTG in this ambitious AI initiative highlights Kasikorn Bank’s desire to remain at the forefront of technological advancements in Southeast Asia.
The Broader Implications for Thailand’s Digital Economy
Kasikorn Bank’s ventures into digital assets and AI represent a broader trend of financial institutions embracing innovation to stay competitive in the rapidly evolving financial landscape. By launching Thailand’s first licensed digital asset custodian, Kasikorn Bank is setting a precedent for other banks and financial institutions in the region to follow suit. The bank’s involvement in blockchain technology and AI projects signifies a forward-thinking approach, one that is essential for Thailand’s ambition to become a leader in the global digital economy.
These developments also align with the Thai government’s policy to modernize the financial sector and support the growth of a digital economy. The introduction of regulated digital asset services is a crucial step in fostering investor confidence and attracting foreign investment in Thailand’s burgeoning digital asset market.
A Bold Step Towards Thailand’s Digital Future
Kasikorn Bank’s launch of Orbix Custodian, along with its other blockchain and AI initiatives, positions the bank as a leader in the digital transformation of Thailand’s financial sector. The introduction of a licensed digital asset custodian service under strict regulatory oversight not only provides security for investors but also sets the stage for further innovation in the country’s financial infrastructure.
As Thailand continues to evolve as a digital economy hub, Kasikorn Bank’s initiatives serve as a model for how traditional financial institutions can adapt to the changing landscape. By embracing blockchain and AI, the bank is laying the groundwork for a more dynamic and inclusive financial future, one that can accommodate the needs of both traditional investors and those looking to explore the burgeoning world of digital assets.
