One of the leading and biggest financial institution of Thailand namely “Siam Commercial Bank (SCB)” has been making some huge investments in the digital currency sector. The bank has recently acquired majority rights in a company which is apparently carrying out business of crypto trading and investment. While acquiring 51% shareholding in the company, SCB said that the acquisition will ensure SCB’s objective towards bringing diversities like digital assets within its offering to the customers.
SCB is though the leading bank in Thailand, yet it is also one of the oldest banks in the country. The financial institution has various subsidiaries which are partially or hundred percent owned by it. One of its company, which is involved in the business of securities, is “Siam Commercial Securities Company Limited (SCBS)”.
At presently SCB has made an announcement in which it told to have invested in digital asset industry. The bank told that through the platform of SCBS, it has invested about US$ 536 Million for acquiring a company called “Bitkub”. As a result, SCB now owns exactly 51% shareholding in Bitkub.
Bitkub, is a Thai crypto trading platform, which is also one of the most popular crypto trading venue in the country. SCB was of the view that the acquisition reflects the ambition of the bank of introducing diversities into the bank for customers. There is obviously a growing interest in SCB’s customers who want to invest in crypto and the bank of course is for the customers. If not today then at least 3 years from now SCB has had to integrate virtual assets. Induction of virtual assets will add further value to the bank and for millions of its customers, said Arthid Nanthawithaya, SCB’s CEO.
The CEO further commented that the Thai crypto industry is no longer the same as it was some three years ago. In fact since 2019, there has been a phenomenal growth and further value has been added into the industry. Individuals as well as the Thai institutional sector are therefore interested in exploring the possibilities of become part of this ever-growing virtual asset industry. So the bank wants to capitalize from this interest. SCB would be more than pleased to grow further along with its individual and institutional customers, suggested SCB’s CEO.
Meanwhile, Bitkub’s CEO & founder, Jirayut Sruprisopa commented that they needed this acquisition. He was of the view that it was one of the desires of his company to go global. However, it was a difficult task which cannot be pulled out single-handedly, said Sruprisopa.
However, according to the acquisition arrangement, the acquisition process will commence sometime in 2022’s first quarter. By that time, the bank would be working towards obtaining NOCs, permissions, licenses etc. from the relevant authorities. Most importantly, the bank would need to ensure completion of requirements laid down by Securities & Exchange Commission and Bank of Thailand.