The Thai Securities and Exchange Commission (SEC) plans to implement distributed ledger technology (DLT) to upgrade the country's securities market.
Technology and Market
The Thai SEC aims to digitize capital markets using a DLT-based platform. This initiative includes bonds and securities issuance and allows trading firms to participate in digital token markets. Jomkwan Kongsakul, the commission’s deputy secretary-general, highlighted the growing interest in token investments, which prompted the regulator to push for an electronic securities ecosystem.
Plans and Expectations
The planned system will digitize every step 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 due to accessibility and liquidity challenges. The DLT-powered system promises faster transactions and the elimination of paper delays.
Future Initiatives
Thailand's SEC has already approved four digital token projects and is reviewing two more. The regulator is also engaging with stakeholders to explore tokenization opportunities in areas like sustainable finance.
This move is part of Thailand's broader strategy towards digital finance, despite the constraints on crypto payments.
