Commercial banks are slowly entering the cryptocurrency space. However, most of them have not ventured into the DeFi sector, and a major Thailand bank is currently experimenting with decentralized finance.
Kasikornbank to try out DeFi
Kasikornbank (also known as KBank), one of the leading banks in Thailand, revealed that it has begun experimenting with DeFi services. The bank stated that the entry into the DeFi space is part of its business expansion plan.
According to the Bangkok Post, KBank is experimenting DeFi services via its tech subsidiary, Kasikorn Business Technology Group, or KBTG. The bank has seen potential in decentralized finance and intends to explore it.
KBTG chairman Ruangroj Poonpol stated that “DeFi is a key exploration for KBank Group this year […] The project is being explored through KBTG under the second phase of the company’s digital transformation program.”
Poonpol believes that DeFi could be key to improving financial inclusion in Thailand by providing them with access to innovative financial services. “With this asset-backed form, DeFi could also create economic value for Thailand,” he added.
Decentralized finance is a blockchain-based form of finance that doesn’t rely on brokerages, exchanges or banks to offer traditional financial instruments. Rather, it utilizes smart contracts on blockchains.
DeFi also allows people to lend or borrow funds from others, bet on price movements of several assets using derivatives, trade cryptocurrencies, and more.
DeFi space is becoming popular
The decentralized financial space is gaining traction in recent months. KBank’s entry into the DeFi space comes as a surprise as more traditional financial banks are not open to providing DeFi services.
However, it would be interesting to see how KBank intends to leverage blockchain technology to provide DeFi services to its customers.