Thailand's Fourth-Largest Bank by Assets Exploring DeFi Offering: Report

In a bid to grow its business, Thailand's fourth-largest bank by assets, Kasikorn (KBank), is reportedly furthering exploration of a project that seeks to bypass financial intermediaries using decentralized finance (DeFi).

In collaboration with the Stock Exchange of Thailand, the project, known as Kubix, has been set up to run as an initial coin offering portal for digital tokens, according to a report by the Bangkok Post on Monday.

The report cites Chairman Ruangroj Poonpol of KBank's technology arm, Kasikorn Business Technology Group (KBTG), who said DeFi is a "key exploration" for the banking group throughout 2021.

Specifically, the project uses smart contracts built on blockchain technology to allow users to lend and borrow funds from others without relying on brokerages, exchanges or banks to provide traditional services.

"The project is being explored through KBTG under the second phase of the company's digital transformation program," said Ruangroj. Phase two is expected to cover the remainder of this year through to 2023 after having successfully completed its first phase throughout 2018-2020, according to the report.

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Ruangroj added that financial services under DeFi would likely improve Thailand's financial exclusion for those unbanked or underbanked by enabling "better access."

"With this asset-backed form, DeFi could also create economic value for Thailand," said Ruangroj.