Thai Bank Will Allow Clients to Raise Funds Using Tokens

Thailand’s Kasikornbank is developing a digital asset ecosystem to help companies confidently raise capital through token sales. The bank’s co-president, Pipit Aneaknithi, believes token sales are more cost-efficient than loans or equity sales.

Pipit’s sentiments came shortly after his bank acquired the digital asset exchange Satang Corp. for $100 million in October. Digital asset sentiment is warming, with Prime Minister Srettha Thavisin proposing using blockchain to distribute $14 billion and a new rulebook that favors coin offerings.

Kasikornbank Token Sales Stance Contrasts With US

According to Pipit,

“We’re advising some clients to issue tokens for fund raising. We’re serious about developing a digital asset ecosystem that will be very cost efficient compared with existing, traditional platforms.”

Grammy Entertainment, a Bangkok company, and Broadcast Thai Television raised $7.6 million through a token offering to fund a movie. Other projects looking to take advantage of crypto rules in Thailand include plans by billionaire Sarath Ratanavadi to launch a crypto exchange through a partnership between his Gulf Energy Development firm and Binance.

Despite their enthusiasm, Pipit said the bank will proceed cautiously during a time “ripe for healthy expansion.” Their stance contrasts with a sourer sentiment expressed by the US Securities and Exchange Commission on the legality of coin offerings.

However, several banks are cautiously expanding their services to include blockchain technology for efficient asset transfers. JPMorgan, for instance, allows select clients to settle transactions over its JPM Coin network 24/7. Other banks, including Morgan Stanley, Citigroup, and Societe Generale, are building infrastructure to allow fast settlements of tokenized assets.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

How Kasikornbank May Process Coin Offerings

One of the sticking points regarding coin offerings could be how the transactions are settled. Kasikornbank’s blockchain division could settle client transactions, while its custody business could hold tokens for the buyer and seller.

Read more: The Definitive Guide on How To Launch an ICO

Another challenge could be the kind of companies that can offer tokens. Those participating in token offerings may need to undergo anti-money laundering and know-your-customer checks, effectively excluding the decentralized finance industry.

Thailand joins Asian rivals Hong Kong, Japan, and Singapore, as well as the European Union, in jockeying for digital asset flows. Sygnum Bank in Singapore recently launched a crypto brokerage and custody business, while Hong Kong’s regime is set to expand to embrace more tokenization.

Do you have something to say about plans by Kasikornbank to offer clients token sales, the cautious approach banks are taking with digital assets, or anything else? Please write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

The post Thai Bank Will Allow Clients to Raise Funds Using Tokens appeared first on BeInCrypto.

Source link