My slide deck on VC investment in the blockchain and cryptocurrency space globally, recent regulatory developments in Southeast Asia, and a summary of enterprise-grade blockchain solutions launched in Thailand. Presented 26 April 2019 at the Fintech on the Block networking night and fireside chat in Bangkok hosted by Bitkub. Many thanks to Vasharada Lapcharoen of Digital Ventures, who did much of the research and created many of the slides.

1. PAUL ARK
MANAGING DIRECTOR, CORPORATEVENTURE CAPITAL
DIGITALVENTURES,A SUBSIDIARY OF SIAM COMMERCIAL BANK
APRIL 2019
A Venture Capitalist’s View on Blockchain and
Cryptocurrency in Southeast Asia

2. Token-Based Funding Comes of Age
2016
2017
2018
116,000
170,000
207,000
252
7,043
19,789
739
3,979
5,319
VC Crowdfunding Coin offerings
Fundraising via token sales
has exploded over the past
few years, growing 786%
CAGR since 2016 and nearly
tripling from 2017 to 2018.
Proceeds from token sales
accounted for 8.5% of all
fundraising for new ventures
in 2018.
New venture funding (US$ mn)
Source: PwC / CB Insights MoneyTree Report
(Q4 2018), Crypto Valley, Statista

3. Increased VC Interest in Blockchain & Crypto
2016
2017
2018
115,310
168,930 201,420
690
1,070
5,580
All other verticals Blockchain & Crypto
VC funding into blockchain
startups and cryptocurrencies
has grown 284% CAGR since
2016, and quintupled from
2017 to 2018, accounting for
2.7% of all VC-funded ventures.
VC funding by vertical (US$ mn)
Source: PwC / CB Insights MoneyTree Report
(Q4 2018), Pitchbook

4. Role of CVC in Blockchain & Crypto Investment
2016
2017
2018
390
670
3,180
300 400
2,400
Institutional VC Corporate VC
Corporate interest in blockchain
and cryptocurrency investment
has grown in lockstep with
traditional institutional VC
funds, and has consistently
represented about 40% of all VC
funding in the sector.
Funding by type of VC (US$ mn)
Source: Pitchbook

5. Largest VC Investments in Blockchain in 2018
Source: Diar
Company Size (mn) Led by
Bitmain $400 Sequoia Capital
DFINITY $163 Andreessen Horowitz, Hashed, Polychain
Basis $133 Bain Capital Ventures
R3 $122 Bank of America, SBI Holdings, HSBC
Circle $110 Bitmain
Seba Crypto $104 Black River Ventures, Summer Capital
Ledger $77 Draper Esprit
Paxos $65 RRE Ventures, Liberty City Ventures, Jay Jordan
Uphold $58 Hard Yaka
Figure $55 Ribbit Capital, DCM Ventures
The 10 largest VC-funded
blockchain and crypto
startups raised nearly $1.8
billion in funding, accounting
for nearly a quarter of all VC
funding into the sector.

6. Source of Blockchain & Crypto VC Investment
Source: Diar
79%
12%
2% 2%
5%
United States China South Korea Singapore Other

7. Recent Regulatory Developments in ASEAN
Source: DV Research, SCB
• SET green-litTH’s
first ICO portal
• Crypto assets = securities
• Unlicensed exchanges &
ICOs carries prison term
• MAS’ Project Ubin for payments
• Global Trade Connectivity Network
(GTCN) for trade finance
• Cybersecurity Law (Jan 2019)
• Regulatory sandbox administered by State
Bank ofVietnam
• Digital AssetToken Offerings
• Creation of Blockchain Association of Philippines
• Promotion of crypto within Cagayan Economic
Zone Authority
• Crypto = commodities
• Ban on crypto as payment

8. Case Study:
Andreesen Horowitz
• Andreessen Horowitz has made 27 publicly-
disclosed crypto investments through its
main fund and its dedicated crypto fund
• In June 2018, the firm launched a $300
million venture fund dedicated to investing
in crypto companies and protocols.
• In 2019, A16Z indicated that it will invest
upwards of $1 billion into cryptocurrencies

9. July 2017: Remittance Payments on Ripple
International transfers
Total remittance flows of
c.US$250M/year
47,000Thai nationals currently
living in Japan
SCB collaborated with SBI Remit to launch Ripple’s xCurrent enterprise blockchain
solution, enabling real-time remittance payments between Japan and Thailand
• Atomic payments:
reduce transaction
time from days to
seconds
• Lower fees from fewer
inefficiencies; 100%
completion rate
• Real-time settlement
of ledgers

10. July 2017: Supply Chain on Hyperledger
KBANK launched a blockchain-based Letter of Guarantee network utilizing IBM’s
Hyperledger Fabric
Of the US$9 billion of Letters of
Guarantee estimated to be issued in
2018, Kbank expected 5% to be issued
via the Hyperledger platform

11. August 2017: Blockchain & IoT
The State Railway of Thailand (SRT) and Thailand Post announced plans to leverage
IoT and blockchain technology to improve their respective logistics services
• Planned investment by the SRT of THB 1 billion (c.US$31M)
over 3 years
• The National Broadcasting and Telecommunications
Commission approved an 8-900MHz spectrum for a wireless
railway communications system
• Key benefits:
• Exact arrival times made available to passengers
• In the event of accidents, IoT sensors attached to trains
will communicate with the railway signaling system and
enable authorities to stop trains immediately
• Tracking of the delivery of high-value parcels

12. October 2017: Remittance Payments on Ripple
Krungsri Bank piloted real-time
remittance payments from Thailand to
Singapore using Ripple’s xCurrent
enterprise blockchain solution

13. February 2018:
Decentralized
Digital Lending
Jaymart’s Jfin Coin will underpin its decentralized
digital lending platform
• E-wallet
• P2P lending
• Crowdfunding
• Marketplace lending

14. May 2018: Equity Crowdfunding on SET LiVE
The Stock Exchange of Thailand launched a blockchain-powered equity crowdfunding
platform for startups and SMEs to raise funds from qualified investors
• Blockchain-based OTC trading service and crowdfunding
market for startups and SMEs
• Investor types on LiVE are:
1) Institutional investors
2) Venture capital investors
3) Corporate venture capital investors
4) Individual investors with annual income of at least
THB4M or with combined assets of at least THB50M
• Only available to companies registered in Thailand
Startups
fundraising
on LiVE
Select
public &
private
sector
partners

15. May 2018: Trade Finance on Blockchain
Bangkok Bank joined the Voltron project to develop a blockchain-based letter of credit
(L/C) service, and joined the R3 consortium to develop a trade finance service on Corda
BBL’s L/C service using the Corda DLT
product will…
• Increase efficiency
• Reduce processing times of transactions,
starting from the request by an importer
to issue an L/C to an exporter receiving
payments

16. September 2018: Cross-Border B2B Payments
KBANK joined Visa’s B2B Connect pilot program designed to improve cross-border B2B
payments
Other banks participating in the pilot program include the U.S. Commerce Bank, Shinhan Bank in South Korea, the Union
Bank of the Philippines, and UOB in Singapore

17. September 2018: Procure-to-Pay with SCG
Co-developed by DV and Accenture on R3’s Corda, Procure-to-Pay is the world’s first fully
integrated block chain procurement-to-payment solution, increasing supply chain efficiency
ERP Integration
Integration of B2P with existing ERP systems so PO
and GR can be managed through the B2P platform
Purchase Order (PO), Goods Received (GR), and
Invoice Visibility
Allows all parties involved in the procurement
process to access relevant information, from PO
issuance to completion of payment
3-Way Matching and Payment Visibility
Automatic matching and verification of POs, GRs,
and invoices, with real-time tracking ability of
approval and payment
Roadmap
PO across industries, international trade, and
tokenized settlements

18. January 2019: Academic Document Verification
Developed by DV on the Ethereum blockchain in partnership with the Ministry of Digital
Economy and Society, B.VER allows universities & employers to verify transcripts online
Selected Partners
• Original transcripts uploaded onto
platform by universities, subsequently
encrypted & stored in a fingerprint format
• Platform decrypts documents by
comparing fingerprint format with original
documents stored on the blockchain to
verify authenticity

19. • Bangchak’s Green Community Energy Management System
(“GEMS”) is an Ethereum-based blockchain platform
which can operate simultaneously with the MEA utility grid
• Currently testing a blockchain energy trading platform and
commercial microgrid at a Bangkok community mall
(anchored by a fuel station)
• Energy pilot will combine:
• c.281kW of commercial rooftop and canopy solar
photovoltaics (PV)
• 913kWh of lithium-ion
• Nickel-manganese-cobalt oxide (NMC)
• 92kWh of lithium-iron-phosphate (LiFePO4) battery
energy storage capacity
March 2019: Energy Trading Platform
Bangchak is developing a MicroGrid energy trading platform on the Ethereum blockchain