Thailand’s Kasikorn Bank (K-Bank) expanded its presence in the digital asset space with its latest acquisition of 97 percent stakes in the parent company of local crypto exchange Satang, Coindesk reported. The deal has been inked at a valuation of 3.705 billion Thai baht ($102.8 million).

Capturing the Thai Crypto Market

Satang has been operating as a crypto exchange in the country since 2017 and offers an array of services, including custody, staking, and crypto payments. However, the spot trading volume on the exchange appears to be much less at roughly $430,000 in the last 24 hours, according to Coinmarketcap.com.

K-Bank made the acquisition with its subsidiary named Unita Capital, which was established with a mandate to invest in crypto companies. The Thai bank additionally launched a $100 million investment fund focused on web3, fintech, and AI. Further, in a statement shared with local media, K-Bank revealed its intentions to capture 20 percent of the Thai crypto market share by 2024.

Following the closure of the acquisition deal, the new owner will rebrand Satang to Orbix, which will have three extra subsidiaries: Orbix Custodian, Orbix Invest (a digital asset fund manager), and Orbix Technology, a blockchain technology developer.

Thai Banks Are in Favor of Crypto

The crypto market in Thailand has a lot of support from traditional financial institutions. Siam Commercial Bank (SCB), a rival of K-Bank, is also making investments in the crypto space. On top of that, SCB agreed to acquire Bitkub, the largest crypto exchange in Thailand, with a daily volume of $22.3 million but scraped the deal last year, citing unsolved regulatory issues. The Thai regulator issued multiple notices to Bitkub and imposed hefty fines.

Meanwhile, the Thai authorities are tightening rules around the operation of crypto exchanges. The country banned crypto lending services earlier this year as well as mandated risk disclosures when offering crypto trading and in all promotions.