Thailand Mulls Blockchain Solution, Cryptocurrency for Local Bond Market

Jul 16, 2018 at 21:06

The Thailand Bond Market Association (TBMA) is planning to launch a custom token and a blockchain powered solution to speed up corporate bond settlement in the country.

The group expressed its intention after getting approval from Thailand’s Securities and Exchange Commission (SEC) to develop a private blockchain that will only be accessible for participants in the bond market including registered issuers, investors and depository organizations.

Bangkok Post reported that TBMA’s development process will start next month and will be divided in three stages to integrate a blockchain-based platform for listing and sharing of crucial bond information in a distributed manner.

The second phase of the project is expected to enable bond deposits, which is estimated to take nine months for completion.

TBMA also indicated that it will eventually develop a bond coin on top of the blockchain platform in the next 12 months to tokenize assets for speedier clearing and settlement.

The group’s executive vice president, Chaitat Prachuabdee claimed that the new infrastructure will improve transparency in dealing with corporate bond information as well as shorten transaction time from the current 7 to 10 days to just 1 to 3 days.

TBMA’s announcement was made amid rumors that Thailand’s national stock exchange has built a blockchain platform that is expected to widen access to capital funds for domestic startups and enhance the efficiency of local equity market.

The group’s plan was also released after Thailand’s SEC issued a regulatory framework for initial coin offerings that only allow companies with a locally registered firm and a minimum registered capital of 5 million baht ($150,000).