Thailand-based bank, Siam Commercial Bank (SCB) explained that it sees blockchain and DeFi as the future of financial banking and would invest in the digital asset community to ensure its rapid growth. Institutions are becoming interested in cryptocurrencies, and this is apparent due to the ongoing adoption by numerous mainstream firms. It’s safe to note that institutional buyers are mostly interested in the industry’s most popular coin, Bitcoin.
Bitcoin has grown steadily over the past years, attracting mainstream attention as it skyrockets. The coin paved the way for altcoins, which have also gained loyal users. Despite Bitcoin being on the top of the list for wealthy buyers, there has been some diverted attention to Ethereum and Decentralized Finance.
Siam Commercial Bank Plans To Explore DeFi
Siam Commercial Bank revealed that it is focusing on Decentralized Finance as it continues to explore the world of blockchain technology. The bank, being one of Thailand’s oldest banks, has shown interest in changing the traditional narrative for finance. Decentralized Finance, also known as DeFi, utilizes blockchain technology to provide financial services to users without using intermediaries. This technology gives users the power over their assets and money, making it one of the most sought-after technologies in the world today. Many banks are reluctant to buy into the idea, but Siam has shown that it sees digital assets in a different light.
The bank assured that it would invest into the technology to help research DeFi and blockchain. Despite Thailand’s current stance on making more laws to regulate the DeFI space, Siam still commits into developing the new technology. Governments and regulators globally are making stringent regulations that can significantly affect the industry’s growth. The new policies can also discourage developers from fully exploring the technology’s potential. Although the idea behind it is to decentralize the financial system, developers are hoping to combine it with traditional finance.
Institutions Want Regulated DeFi
Mainstream and institutional businesses that have invested in DeFi want a hybrid of a regulated financial system and DeFI. This new development means that the technology would have rules guiding the activities while improving reach, efficiency, cost reduction and other benefits. The commercial Bank had initially raised $50 million, which it got as a seed fund, to fund the project. The fund helped the institution improve its outlook on financial technology, pushing it to develop the growing initiative. Siam Commercial Bank’s Mukaya Tai Panich revealed that the business wants to work on decentralized finance as one of the emerging finance associated technologies..
The chief venture and investment officer explained that the institution has started work on blockchain, and that it’s fascinated by the technology. He assured that the financial system would be automated, meaning that humans would interact with computers to get transactions settled. Panich revealed that SCB wants to capitalize on the initiative’s ability to disrupt the current financial system. This made Siam allocate $110 million to blockchain and DeFi from its Venture Capital Fund.