By George Ward
Thai’s Growing Digital Token Sales
One of Thailand’s leading financial institutions, Kasikornbank, is developing a new digital system allowing businesses to raise funds through token sales, similar to digital assets’ initial coin offerings (ICOs). Pipit Aneaknithi, co-president of the bank, believes that selling tokens is a better way for companies to raise funds than taking loans or selling parts of their business.
Pipit birthed this idea in October 2023, shortly after the bank purchased Satang Corp., a digital asset exchange, for $100 million. With people becoming more interested in digital assets, the banker sees this move as a response to the evolving financial landscape worldwide.
Similarly, Thailand’s prime minister, Srettha Thavisin, has proposed using blockchain technology to disburse $14 billion in government funds. In addition, Thailand has implemented new rules that will make it easier for entities to offer coins to interested investors.
Furthermore, firms like Grammy Entertainment and Broadcast Thai Television have reportedly raised $7.6 million by offering tokens to assist in movie production. More plans are underway to adopt tokenized fundraising initiatives in the country.
For example, billionaire Sarath Ratanavadi aims to establish a crypto exchange through a collaboration with Binance and his Gulf Energy Development Company. In Thailand, there is a lot of interest in tokenized fundraising for using crypto rules for various projects and businesses.
It is a growing trend for companies to find new ways to raise capital and use digital assets to achieve their objectives. The trend toward tokens and digital assets is gaining traction in Thailand’s financial landscape.
Caution Over Coin Offerings
Pipit stated that, while this is an exciting time for growth, Kasikornbank will proceed cautiously to ensure a healthy expansion. According to him, the firm’s approach differs from that of the US Securities and Exchange Commission (SEC). The SEC has previously expressed concerns about the legality of coin offerings.
Meanwhile, several banks are cautiously expanding their services by embracing blockchain technology to facilitate faster and more efficient asset transfers. JPMorgan, for example, allows some of its clients to complete transactions around the clock using their JPM Coin network.
Furthermore, major banks such as Citigroup, Morgan Stanley, and Societe Generale are actively developing systems that will enable the rapid settlement of tokenized assets. They are laying the groundwork for faster and smoother processes for assets represented as tokens.
Meanwhile, some financial institutions are gradually incorporating blockchain into their operations. This move represents a shift in how traditional financial institutions integrate new technology to improve their services.
Challenges In Tokenized Coin Offerings
One potential area for improvement with coin offerings is how transactions are finalized. Kasikornbank’s blockchain division would likely settle client transactions, while its custody division holds tokens for buyers and sellers.
Another area for improvement is determining which companies are eligible to issue tokens. Those involved in token offerings may be required to undergo anti-money laundering and know-your-customer checks.
It is worth noting that Thailand is competing for digital asset market inflows with other regional rivals like Hong Kong, Japan, and Singapore. Singapore’s Sygnum Bank, for example, recently launched a crypto brokerage and custody service.
Hence, it is no surprise that Hong Kong is expanding its scope to allow for more tokenization offers. The digital assets landscape is rapidly changing, and countries are establishing friendly regulations and infrastructure to accommodate these shifts in finance and technology.