Kasikornbank Launches Thailand's First Licensed Digital Asset Custodian

Thailand's Kasikornbank Set to Launch Orbix Custodian as First Licensed Digital Asset Custodian

In a significant development in the digital asset landscape, Kasikornbank, Thailand’s second-largest bank by assets, has announced plans to introduce orbix Custodian, the country's first licensed digital asset custodian, following the receipt of a Digital Asset Custodian license from the Ministry of Finance. This groundbreaking initiative will be regulated by the Securities and Exchange Commission (SEC) and operations are set to commence in early 2025.

Strategic Move to Enhance Digital Financial Infrastructure

The introduction of orbix Custodian is part of a broader strategy by Kasikornbank to enhance its presence in the digital asset sector and support the development of a robust digital financial infrastructure in Thailand. President Pipit Aneaknithi emphasized that this initiative aims to position Thailand as a hub for digital economy and align with government policies to foster the country’s digital industry.

Ownership and Associated Ventures

Kasikornbank has established orbix Custodian through its digital-focused subsidiary, Unita Capital. Unita Capital is not only responsible for orbix Custodian but also oversees other key ventures including orbix Invest and orbix Technology. Notably, the orbix Trade platform, a cryptocurrency exchange formerly known as Satang, was acquired by Unita Capital in October 2023, further illustrating the bank's commitment to digital transformation.

The Q-Bond Initiative and Financial Products

In early September, orbix Technology, under Unita Capital's umbrella, initiated the Q-Bond project, successfully issuing Q Bonds worth 500 million baht (approximately $15.4 million) on the Quarix blockchain. These bonds have a maturity of one year and a fixed interest rate of 2.38%. This issuance was made in partnership with state-owned oil and gas company PTT, underlining the collaborative approach with major institutions.

Expanding Digital Asset Management

Expanding its digital asset portfolio, orbix Invest, a digital asset fund manager, was launched in July. Additionally, orbix Reward, a customer loyalty program for orbix Trade, was introduced at the beginning of September, indicating a comprehensive strategy to engage with customers in this evolving market.

Innovations in AI and Language Models

In conjunction with its digital asset initiatives, Kasikornbank's subsidiary, Kasikorn Business Technology Group (KBTG), is also actively involved in AI research and development. KBTG has collaborated with AI Singapore and Google Research on Project SEALD (Southeast Asian Languages in One Network Data). This project aims to create large language models (LLMs) catering to Southeast Asia, including languages such as Thai, Indonesian, Tamil, Filipino, and Burmese, showcasing KBank’s commitment to technological advancement in the region.

Conclusion

With the launch of orbix Custodian and ongoing developments in digital finance and AI, Kasikornbank is positioning itself as a leader in Thailand's digital economy. This strategic direction aligns with national goals and could potentially attract more investors and businesses looking to engage in the digital asset ecosystem.

As the digital landscape continues to evolve, initiatives like these not only contribute to the financial ecosystem but also highlight Thailand's readiness to embrace new technologies and innovations.