Bangkok-headquartered digital asset and cryptocurrency exchange Bitkub has sold 51 per cent of its total shares to SCB Securities (SCBC) for 17.85 billion baht (~US$536 million).
SCBS is a subsidiary of one of Thailand’s largest and oldest banks, Siam Commercial Bank or SCB.
Upon the deal closing (expected to complete in Q1 2022), SCBS will become the major shareholder of Bitkub. This brings Bitkub’s valuation to more than US$1 billion, making it Thailand’s third unicorn, alongside Flash Group and Ascend Money.
SCB intends to work closely with Bitkub as a business partner, develop digital asset businesses through new business models to create long-term added value and lay the foundation for the bank’s further entry into the financial world of the future.
“We strongly believe that together we can drive the Thai economy into the future to be a regional financial and technological centre. And it is an important opportunity to create a new national champion for Thailand,” said Bitkub CEO and founder Jirayut Srupsrisopa.
Also read: Inside the changing landscape of Asian cryptocurrency exchanges
Founded in 2018, Bitkub offers services including cryptocurrency and digital assets exchange, blockchain solutions and ICO advisory services, education workshops, and venture capital investments. The startup aims to push forward the cryptocurrency and blockchain ecosystem toward mass adoption in Thailand.
The acquisition is in line with SCBx Group’s (the holding company of SCB) strategy to upgrade to a financial technology group, meet new consumer needs, and enter the new competitive and emerging arena of digital assets in the next three to five years.
SCB also owns a fintech venture subsidiary SCB 10X, which has invested in enterprise blockchain solution provider Ripple, custody tech firm Fireblocks, investment bank Sygnum, and centralised crypto lender BlockFi. The firm also participated in the US$93-million funding round of The Sandbox.
Thai crypto market has witnessed the involvement of notable banks this year. In August, Bank of Ayudhya, through its VC arm Krungsri Finnovate, participated in the US$41 million Series B of Zipmex, a Singapore-based crypto exchange that has been licensed in Thailand.
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Image Credit: SCB
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