Copy link
Increase text size
Decrease text size
Link copied

Siam Commercial Bank’s venture capital arm invests in decentralized finance (DeFi)

SCB 10X believes that DeFi firms could work hand in hand with their traditional counterparts in the future.

Image by: Marco Verch Professional Photographer / Flickr

Tue, 13 Jul 2021, 07:58 am UTC

SCB 10X sees decentralized finance (DeFi) disrupt traditional banking. The firm, which is the venture capital arm of Thailand’s oldest bank Siam Commercial Bank, is preparing for this possibility by investing in the sector.

SCB 10X chief venture and investment officer Mukaya Tai Panich explained that DeFi already possesses everything traditional finance has, according to Coindesk. These include services and products such as asset management, credit/lending, trading, insurance, prime brokerage, and derivatives.

“When we looked at DeFi, we thought that it is possible that one day banks and other financial institutions will be completely disintermediated,” Panish said. Disintermediation, also known as cutting out the middleman, is the removal of intermediaries from a supply chain.

Indeed, proponents have touted DeFi for removing middlemen in financial transactions resulting in lower fees and faster transaction execution. This is done via the use of smart contracts, which are computer codes that set the rules and execute transactions once the conditions agreed by both parties are met.

Panich revealed that his firm is preparing for this scenario by actively investing in DeFi. SCB is also looking at integrating DeFi into traditional finance and is scouting for a suitable partner in the sector.

“We would like to partner with DeFi protocols to work together to solve the issues in traditional finance to reduce costs of operation, have real-time settlements, eliminate intermediaries, as well as have a high level of transparency,” she explained.

Panich believes that DeFi firms could work hand in hand with their traditional counterparts in the future. In this potential setup, traditional finance firms would handle customer-facing activities while DeFi ones would handle backend activities, an arrangement that could reduce settlement and transaction times and lower cost.

“For this to happen, I think traditional financial companies like us should actively explore, invest and adopt DeFi,” Panish said. “And at the same time, DeFi companies should look to work with traditional financial companies to leverage their strengths.”

SCB also expects increasing cross-chain interoperability among existing protocols, which could reduce inefficiencies. “Currently, different blockchains are solving specific problems within their own ecosystem,” Panich said. “There are a lot of inefficiencies as assets are being used mostly within the ecosystem and cannot be transferred to be used in another blockchain that easily.”

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
  • USA4
  • 2021.07.22 08:30:25
DO YOU NEED A PERSONAL/BUSINESS/INVESTMENT LOAN? CONTACT US TODAY VIA WhatsApp +19292227023 Email [email protected]

HELLO

Loan Offer Alert For Everyone! Are you financially down and you need an urgent credit/financial assistance? Or are you in need of a loan to start-up/increase your business or buy your dream house. GET YOUR INSTANT LOAN APPROVAL 100% GUARANTEED TODAY NO MATTER YOUR CREDIT SCORE. WhatsApp:+19292227023 Email: [email protected]

Capital Managements Inc Website: https://capitalmanage-inc.com/
  • 0
  • ·
  • 0
  • USA4
  • 2021.07.22 08:30:25
DO YOU NEED A PERSONAL/BUSINESS/INVESTMENT LOAN? CONTACT US TODAY VIA WhatsApp +19292227023 Email [email protected]

HELLO

Loan Offer Alert For Everyone! Are you financially down and you need an urgent credit/financial assistance? Or are you in need of a loan to start-up/increase your business or buy your dream house. GET YOUR INSTANT LOAN APPROVAL 100% GUARANTEED TODAY NO MATTER YOUR CREDIT SCORE. WhatsApp:+19292227023 Email: [email protected]

Capital Managements Inc Website: https://capitalmanage-inc.com/
  • 0
  • ·
  • 0
  • OpalCityView123
  • 2021.07.20 09:58:32
<a href="https://opal-cityview.vn/vi-tri-du-an-opal-cityview/" >vị trí dự án Opal cityview</a> Công ty cung cấp dịch vụ tư vấn BDS
  • 0
  • ·
  • 0
More
  • Bitcoin (btc) $38,748.00 (+2.58%)
  • Ethereum (eth) $2,676.00 (+8.10%)
  • Tether (usdt) $1.00 (+0.05%)
  • Binance Coin (bnb) $329.86 (+2.76%)
  • Cardano (ada) $1.37 (+3.24%)
  • Bitcoin (btc) $38,748.00 (+2.58%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft