Thailand Is Planning a 'Bond Coin' for Faster Securities Settlement

A self-regulatory organization in Thailand is planning to create a custom token aimed to speed up corporate bond settlement in the country.

AccessTimeIconJul 16, 2018 at 6:00 a.m. UTC
Updated Sep 13, 2021 at 8:10 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

A self-regulatory organization in Thailand is planning to create a custom token aimed to speed up corporate bond settlement in the country.

The Thailand Bond Market Association (TBMA) said it has received the green light from Thailand's Securities and Exchange Commission to develop a private blockchain that will be only accessible for parties in the bond market, such as registered issuers, investors and depository organizations.

According to a news report from Bangkok Post on Monday, the TBMA said the development process will be divided into three stages and will start next month. The orgnization further explained it will first create a blockchain-based platform for listing and sharing bond information, such as interest rates in a distributed manner.

During the second phase, the platform will add in new features to enable bond deposits, which is estimated to take nine months for completion, the report said. The TBMA indicated it will eventually develop what it calls a "bond coin" on top of the blockchain platform in the next 12 months to tokenize assets for speedier clearing and settlement.

Chaitat Prachuabdee, executive vice president of the TBMA, said the new infrastructure is expected to improve the transparency of corporate bond information and could potentially shorten the transaction time from the current 7–10 days to just 1–3 days.

The effort follows news that Thailand's national stock exchange has built a blockchain platform it hopes will widen access to capital funds for domestic startups and enhance the efficiency of Thailand's equity market.

Blockchain is increasingly being eyed and adopted in the securities markets as a solution for improving settlement systems.

As previously reported by CoinDesk, Switzerland's primary stock exchange also released a plan for building a digital asset exchange in order to tokenize and transact traditional securities.

Meanwhile, a group of industry stakeholders including Nasdaq has developed a blockchain platform to transfer collateral to central counterparties when trading securities.

Perhaps most notably, though, the Australian Securities Exchange (ASX) is planning to replace its CHESS clearing and settlement system with a distributed ledger-based alternative in 2020.

Market index image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.