Thailand’s Securities and Exchange Commission (SEC) is developing a blockchain-based digital token trading platform for securities firms. The initiative aims to “improve efficiency” in bond trading, removing delays and manual processing.
Background
- Thailand’s financial sector is taking a significant step toward digitalization with plans to introduce a blockchain-powered platform for trading digital securities.
- The initiative, led by the Thai SEC, seeks to modernize bond trading by eliminating inefficiencies in settlement, investor registration, and return payments.
- Currently, bond purchases from the primary market take up to 14 days before they become tradable, creating bottlenecks.
- Additionally, bond issuers must handle extensive manual data processing, further slowing down transactions.
- The SEC has already approved four digital token projects and is reviewing two more, while five additional parties have engaged in preliminary discussions with the regulator.
Why should you pay attention?
- This development signals a major step toward blockchain adoption in Thailand’s regulated financial markets.
- The SEC aims to make the bond trading process “faster, more efficient, and accessible” through digitalized securities.
- The agency has confirmed that firms in the private sector will be permitted to create independent blockchain systems, if they adhere to the SEC’s unified standards.
- The move could attract more institutional and retail investors to Thailand’s digital asset ecosystem.
Who said what?
- Jomkwan Kongsakul, deputy secretary-general of the Thai SEC, stated:
“In the future, there may be multiple chains for trade. Trading through DLT on all systems is connected by a share ledger, which is expected to be completed soon”
- Kongsakul added:
“There will be two types of securities issuance, including products that start trading as digital-native products born from DLT, which are electronic securities”
Zooming out
- Thailand is joining a growing list of countries leveraging blockchain for capital markets and financial modernization.
- If successful, Thailand’s blockchain-based trading platform could serve as a model for other nations looking to regulate and innovate within the digital asset space.
