Thailand’s Kasikornbank eyes tokenized securities in raising funds

Thailand’s second-largest lender in terms of assets, Kasikornbank (NASDAQ: KPCPF), has confirmed plans to explore tokenized securities to offer modern funding alternatives for business entities in the country.

Under its long-term plan, Kasikornbank seeks to establish a digital asset ecosystem to support the issuance of digital assets for fundraising. It has already laid the foundations for its pivot into Web3 following its acquisition of digital asset exchange Satang Corporation back in October.

While acquiring the exchange raised industry eyebrows, Kasikornbank doubled its Web3
ambitions by minting an internal digital asset division. The division has since begun burrowing into blockchain applications and the prospects of offering digital asset custodial services.

Armed with sufficient blockchain experience, Kasikornbank is set for its most ambitious play through the launch of a blockchain-based fundraising platform. Currently, full details for the platform have yet to be disclosed, but Kasikornbank will reportedly earn from charging yield on tokens issued on its platform.

The company says it has opened discussions with several firms seeking to raise funds, advising them to explore the tokenized securities option.

“We’re advising some clients to issue tokens for fundraising,” said Kasikornbank Co-President Pipit Aneaknithi. “We see potential in this market. We’re serious about developing a digital-asset ecosystem that will be very cost-efficient compared with existing, traditional platforms.”

Kasikornbank will have to grapple with gaining the approval of Thai’s securities regulator, given its traditional hard stance on digital assets. Apart from a faceoff with regulators, the financial institution faces the uphill climb of onboarding clients for the offering while maintaining global best practices.

Pipit remarks that leaning on tokenized securities for fundraising will allow companies to save funds, unlike traditional sales of shares or loans from lenders.

Kasikornbank’s tango with Web3 has seen it invest in a Singaporean-based fractional bond platform before floating a $100 million VC fund to invest in fledgling decentralized finance (DeFi) startups.

Changing the tide for Thailand

Rattled by the catastrophic collapse of exchanges in 2022, Thai regulators began rolling out stiff regulations for the industry designed to protect local investors.

Authorities banned digital asset service providers from offering staking and lending services, threatening to expel Facebook for failing to stifle the activities of digital asset scammers.

However, new Prime Minister Srettha Thavisin has sparked conversation of a softening stance by regulators given his Web3 economic revival plan. In April 2024, Srettha’s government will dispense digital cash to citizens above 16 in a move described as an “economic tsunami” for the Southeast Asian country.

Watch Lars-Jacob Boe: Blockchain is much more than digital assets