Thai bank experimenting with decentralized finance to expand
One of the major banks from Thailand, Kasikornbank is also known as KBank, has started experimenting with Defi services in order to expand the business.
According to a news report shared by Bangkok Post, the bank’s DeFi experiment is being led by Kasikorn Business Technology Group (KBTG), KBank’s tech subsidiary.
While speaking on KBank’s DeFi plans, KBTG chairman Ruangroj Poonpol said that DeFi is a key exploration for KBank Group this year. He added, ”The project is being explored through KBTG under the second phase of the company’s digital transformation programme.”
Poonpol believes DeFi could hold the key to improving financial inclusion for people in Thailand via access to innovative financial services, adding: “With this asset-backed form, DeFi could also create economic value for Thailand.”
Asset-backed DeFi comes with regulatory hurdles, given its interaction with already existing real-world assets. Indeed, industry participants, such as MakerDAO’s Rune Christensen, have already started clamoring for engagement between DeFi stakeholders and regulators if decentralized finance is going to continue its transition to the mainstream corporate arena.
Through DeFi adoption plans, KBank is looking to expand its presence in the Southeast Asia region, specifically in countries like Vietnam where about two-thirds of the population remains unconnected with banks.
The second-largest Thai lender by assets reportedly accounts for 40% of the nation’s digital banking transactions as being the largest mobile banking platform in Thailand with more than 16 million users on its app.
Apart from its DeFi adoption plans, the bank also has a past experience of crypto and blockchain adoption in Thailand. Back in September 2018, the bank joined Visa’s blockchain-based B2B solution for cross-border payment transactions.