Kasikornbank or KBank, one of the largest banks in Thailand, has started experimenting with DeFi services as part of its business expansion plan.
According to a report by the Bangkok Post, The bank’s DeFi exploration is led by Kbank’s technology subsidiary, the Kasikorn Business Technology Group, or KBTG.
Commentary on KBank’s plans for DeFi, the KBTG president, Ruangroj Poonpol, He said:
DeFi is a major exploration for KBank Group this year [â¦] The project is being investigated as part of the second phase of the company’s digital transformation program via KBTG. “
According to Poonpol DeFi could be the key to improving the financial inclusion of people in Thailand through access to innovative financial servicesand added: “With this asset-backed form, DeFi could also create economic value for Thailand.”.
Asset-backed DeFi is associated with regulatory hurdles due to its interaction with real assetsIn fact, industry players like MakerDAO’s Rune Christensen have already started call for a compromise between DeFi stakeholders and regulators if decentralized funding is to continue its transition to mainstream.
With the introduction of DeFi in maps, KBank is keen to expand its presence in Southeast Asia, particularly in countries like Vietnamwhere about two thirds of the population are left without a bank.
KBank’s entry into DeFi follows the bank’s dominance in the country’s digital banking sector.According to reports, the second largest Thai lender by assets accounts for 40% of the country’s digital banking operations as it is the largest mobile banking platform in Thailand with over 16 million users in your application.
Aside from his planned experiments with DeFi, KBank has also introduced cryptocurrencies and blockchain technology in Thailand.In September 2018, the bank joined Visa’s blockchain-based B2B solution for cross-border payments.
KBank through its subsidiary KBTG, The company also operates a digital trading platform in cooperation with the Thailand Stock Exchange.