Thailand is now aiming to create a bond token to speed up a corporate bond settlement by its bond market self-regulatory organization. However, the country’s Securities and Exchange Commission has permitted to develop a private blockchain. It is only accessible for parties in the bond market like investors, registered issuers, and depository organizations.
According to the source released July, 16, the TBMA stated that the process of development will be divided into 3 stages. However, it will first create a blockchain based platform for listing and sharing information. Thus it will start next month.
At the second stage, the platform will add a new feature that allows bond deposits. However, it undergo the period of nine months for completion. Later the TBMA explains that it will gradually develop a bond coin on top of the blockchain platform. Since it is only to tokenize the assets so that it gets clear and settled.
The executive vice president of TBMA, Chaitat Prachuabdee said that the system will help in improving the transparency of corporate bond information. On the other hand, with the high convenience and access to bond information. Therefore, it can shorten the transaction time from a week or 10 days to just 1 to 3 days.
Previously, Thailand’s national stock exchange also develop a blockchain platform to enhance the access to capital funds for domestic startups. Although, the country is still not the first country which is involved in blockchain for settling securities. Recently, Switzerland’s primary stock exchange also released its plan for building a digital asset exchange in order to tokenize and transact traditional securities.
Image Source: Securities Settlements