Thailand’s Kasikornbank, the nation's second-largest bank by assets, is taking a significant step in the digital finance sector by planning to introduce orbix Custodian as the country's first licensed digital asset custodian. The Ministry of Finance has granted orbix Custodian a Digital Asset Custodian license, ensuring strict regulation by the Securities and Exchange Commission (SEC).
This license, which was awarded on September 13, paves the way for operational commencement anticipated in early 2025. This initiative aligns with a broader strategy from Kasikornbank to enhance its footprint in the burgeoning digital asset space. As articulated by President Pipit Aneaknithi, the objective of this move is to lay a solid foundation for developing digital financial infrastructure in Thailand.
This positioning aims to establish the nation as a digital economy hub while furthering the country's digital industry, in harmony with government directives. Kasikornbank's ownership of orbix Custodian is via its digital-centric subsidiary, Unita Capital. Unita Capital also oversees the operations of orbix Invest and orbix Technology, indicating a cohesive drive towards digital innovation.
In a notable acquisition, Unita Capital took over the orbix Trade platform, a cryptocurrency exchange that was formerly known as Satang, in October 2023. orbix Technology specializes in blockchain infrastructure services, a function inherited from Satang, further establishing the bank's technological prowess. In early September, orbix Technology made headlines with the launch of the Q-Bond project, which involved the issuance of Q Bonds valued at 500 million baht ($15.4 million) on the Quarix blockchain.
These bonds, characterized by a one-year maturity and a fixed interest rate of 2.38%, demonstrate the innovative financing approaches being adopted in this digital era. Remarkably, KBank has collaborated with PTT, the state-owned oil and gas giant, for this bond issuance, highlighting the integration of traditional firms with emerging digital frameworks. Beyond the digital asset initiatives, KBank's subsidiary, Kasikorn Business Technology Group (KBTG), is cementing its role in the AI landscape by collaborating with AI Singapore and Google Research.
This partnership is focused on developing large language models (LLMs) tailored for Southeast Asia under Project SEALD (Southeast Asian Languages in One Network Data). This ambitious project, initiated in March, strives to create LLMs in various languages such as Thai, Indonesian, Tamil, Filipino, and Burmese, showcasing the comprehensive efforts in fostering technological advancements.
KBTG's involvement in the initiative was publicly confirmed on September 24..