The Securities and Exchange Commission (SEC) of Thailand is set to revolutionize the country’s securities market by launching a distributed ledger technology (DLT)-based platform for digital securities trading. This move comes as part of Thailand’s broader push towards digital finance, aiming to modernize and streamline the capital markets.
According to a report from the Bangkok Post on February 3, the Thai SEC is looking to digitize various aspects of the securities market, including bond trading and securities issuance. Jomkwan Kongsakul, the commission’s deputy secretary-general, emphasized the growing interest in token investments, prompting the regulator to push for an electronic securities ecosystem.
The planned DLT-based system is expected to streamline the entire process of bond trading, from issuance and settlement to investor registration and payments. Currently, buying bonds in the primary market can take up to two weeks before they become tradable, with accessibility issues and liquidity constraints limiting investor participation. The manual processes and paperwork delays further exacerbate these challenges, making a strong case for a DLT-powered system that offers faster transactions, real-time trading, and fractional ownership.
Kongsakul mentioned that Thailand’s digital securities market will support both electronic securities, issued and traded as fully digital assets, and tokenized traditional securities. Firms with existing blockchain infrastructure can operate independent chains as long as they meet interoperability standards, while others can utilize the SEC’s public chain at a lower cost.
The SEC has already approved four digital token projects under the new system, with two more under review, including green tokens and investment-based products. The regulator is also collaborating with other stakeholders to explore tokenization opportunities in areas like soft power funding and sustainable finance.
In a separate development, Thailand’s government is reportedly considering issuing a stablecoin backed by government bonds. Finance Minister Pichai Chunhavajira discussed the concept with the SEC during a recent meeting, although there has been no official confirmation yet. This initiative aligns with Thailand’s efforts to explore digital finance solutions and stay at the forefront of technological advancements in the financial sector.
Overall, the launch of the DLT-based platform for digital securities trading by the Thai SEC marks a significant step towards modernizing the country’s securities market and embracing the benefits of blockchain technology. As Thailand continues to explore innovative financial solutions, the digital securities market is expected to play a crucial role in driving efficiency, transparency, and accessibility in the capital markets.