Thai bank joins $41m round for local crypto platform
Thailand’s Bank of Ayudhya has joined a $41 million Series B round for local cryptocurrency exchange operator Zipmex.
Ayudhya, which is part of Mitsubishi UFJ Financial Group (MUFG), is investing via its VC unit Krungsri Finnovate. The deal establishes it as one of the first Southeast Asian banks to invest in a digital assets platform amid rising mainstream uptake of blockchain-based services.
“The move puts the bank ahead of other large banks in the region who have recently made moves in the digital asset space – a fact which demonstrates increasing institutional buy-in to the space,” Zipmex said in a statement.
It follows an investment last month by SCB10X, the VC arm of Thailand’s Siam Commercial Bank, in Fireblocks, a US and Singapore-based crypto infrastructure provider for financial institutions. SCB10X has also made crypto sector investments in US-based players Ripple, a payments network, and BlockFi, a lending platform.
Thailand has proven a progressive jurisdiction in terms of financial technology, with other traditional institutions such as Kasikorn Bank, Bangkok Bank, and Government Savings Bank also having established dedicated investment units. In crypto specifically, Singapore’s DBS Bank is arguably Asia’s leading traditional bank, having recently set up an experimental coin custody and trading service.
Zipmex describes itself as the only digital assets platform licensed in Thailand that operate under regulatory supervision in Indonesia, Australia, and Singapore.
In addition to a trading platform, the Singapore-headquartered company provides a digital asset payment tool and interest-bearing accounts for crypto wallets to about 1 million customers. It has processed more than $4 billion in gross transaction volume since its launch in 2019.
Krungsri’s investment in the company also included participation from Hong Kong’s MindWorks Capital and US-based Jump Capital, which led a $6 million Series A earlier this year. They were joined in the Series B by Bangkok-listed media companies Plan B Media and Master Ad.
Krungsri said the investment was an important opportunity for its parent bank to explore digital assets and build an ecosystem able to service customers’ changing needs. The firm also noted that as part of MUFG, which has a presence in more than 50 countries, it could provide Zipmex with significant networking support.
“Krungsri Finnovate places great importance on technology and financial innovation in every way. We believe that tech and innovation will be the driver of economical and society-focused solutions to the country’s future,” said Sam Tanskul, a managing director at Krungsri.
“The close cooperation between us and Zipmex is a strong indication that we are in full support of financial development and innovation through different technological means and [have] a strong belief that Zipmex will play a crucial role in such developments, not just in Thailand, but in the Asia-Pacific region.”
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