Thia's Big Bank, Siam Commercial Bank Announces It's Intension to Hugely Invest in DeFi

The venture capital arm of Thailand’s oldest bank, Siam Commercial, announces reinvesting into DeFi, according to a report on Bloomberg

Global Cryptocurrency Bloodbath

It is not news that there has been a bloodbath in the Crypto space with over 50% crash of general crypto price by market cap as the GC/USD Chart on Coinmarket Cap showcases a drop in global crypto price from $2.7 Trillion as of the 16th of November 2021 to $1.2 Trillion today's price. The total value locked (TVL) has more than halved from $252 billion earlier this year to $93 billion yesterday. GMT dropped 37% in 24hrs and Altcoins such as Solana, Avalanche and Polkadot prices crashed as huge as 20%, terra was not left out as it lost over 90% in the general sea of red in the space from $119 to $0.0001 which is next to nothing. It has been all red in the space.

Not regarding any of these factors, the oldest bank in Thailand, Siam Commercial (SCB) reveals the intention to invest hugely in the crypto space.

It was reported by Bloomberg that SCB has previously sustained losses in the space as it was revealed that an undisclosed amount was invested to Compound Treasury which offers a 4% return on deposits. This investment took place a few weeks after the price crash in Terra Network. For this, 

Mukaya Panich, who is the Chief Investment Officer of SCB 10X, sees the possibility that the alliance between both companies and the tight regulations that would be enforced on DeFi would bring about a bullish trend in the space, as Panich said that the crash is likely to invite tighter regulations over DeFi, making the space more palatable for institutional traders. He also disclosed in one of his tweets.

The idea is that Siam Commercial Bank will develop risk monitoring tools that will help to track parameters on Compound in a similar manner to a bank.  Through Compound, it will also explore incorporating DeFi yield generating products into Siam Commercial’s products.

Despite growing crypto adoption, most major trading houses are still hesitant towards DeFi. A lack of regulation over the space, coupled with the need to directly hold crypto are likely the two major factors influencing this.

But with the advent of products such as Compound’s treasuries, this trend could change.