Wednesday, November 13, 2019
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Thailand To Introduce Blockchain-Based Token for Instant Settlement & Clearing Of Corporate Bonds

Thailand’s self-regulatory organization is planning to prepare a blockchain-based token, “Bond Coin” that will enable instant settlement and clearing of corporate bonds. According to the Thailand Bond Market Association (TBMA), it has received permission from the Securities and Exchange Commission of Thailand to create a private blockchain. It can be accessed only by traders trading in the bond market including investors, depository organizations, and registered users.

Development process to be divided into three stages

Prior to starting preparation for the blockchain-based token, the TBMA researched blockchain’s utility for the platform of bond registrar services. According to the prominent securities markets body in the country, the development process has been divided into three stages, which will start next month.

TBMA stated that blockchain-based platforms will first list and share bond information including interest rates in a distributed way. This bond registrar subscription system will also be used for verifying bond transactions. According to TBMA President, Tada Phutthitada, even during its first phase, the platform will receive support from smart contracts. It will include a subscription system, a settlement information system, and a verification system. During the first phase, the blockchain platform will present an information fact sheet that will include payments and interest rates and other information. With the introduction of this phase, the operational process will come down to 1 to 3 days from 7 to 10 days.

Second phase of Bond Coin to enable bond deposits

The second phase will include the addition of new features for enabling bond deposits. This process is expected to take nine months to complete. It will include bond deposit services before the conclusion of the final leg.

Eventually, in its third phase, TBMA will develop Bond Coin in the coming year on top of the blockchain-based platform. Development of Bond Coin will tokenize assets leading to speedy clearing and settlement. Since the process is decentralized it will not require the presence of any middlemen. The three-phase project is expected to be introduced in August 2018.

Currently, cryptocurrency exchanges are experiencing good times in Thailand. Apart from the creation of Bond Coin, the domestic securities industry in the country is also preparing to launch a joint cryptocurrency exchange. The national stock exchange of the country has already launched a blockchain-based platform.

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