Thailand has launched tokenized government bonds known as G-Token, making the sovereign debt market accessible to smaller investors.
G-Token Features
The Thai government introduced the G-Token, allowing smaller investors to participate in the market for government bonds. A consortium including KuCoin, XSpring Digital, SIX Network, and Krungthai XSpring has received approval from the Ministry of Finance.
Investment Structure and Conditions
The first tranche totals 5 billion baht (about $153 million). Each token is backed by Thai baht and carries fixed interest. Investors can participate with a minimum of approximately $3, significantly below traditional bond lots.
Context of Thailand's Digital Finance Program
The launch of G-Token coincides with a broader digital finance program aimed at promoting tokenized assets, including gold-linked instruments, and a five-year exemption on capital gains tax for cryptocurrency profits.
The launch of G-Token marks a significant move toward simplifying retail investor access to government bonds and showcases Thailand's progress in digital finance.
