Thailand is developing a distributed ledger technology-based trading system to modernize the country’s securities market.
According to a Feb. 3 report from the Bangkok Post, the Thai Securities and Exchange Commission wants to digitize capital markets like bond trading and securities issuance by launching a DLT-based trading platform, allowing securities firms to participate in digital token markets.
Jomkwan Kongsakul, the commission’s deputy secretary-general, highlighted a growing interest in token investments, which prompted the regulator to push for an electronic securities ecosystem.
The planned system is expected to digitize every step of bond trading, from issuance and settlement to investor registration and payments, reducing inefficiencies in the traditional process.
Currently, buying bonds in the primary market can take up to two weeks before they become tradable, while accessibility issues and liquidity constraints limit investor participation. Kongsakul noted that manual processes and paperwork delays add to these challenges, making the case for a DLT-powered system that offers faster transactions, real-time trading, and fractional ownership.
Without disclosing any details, Kongsakul added that Thailand’s digital securities market will support both electronic securities, which are issued and traded as fully digital assets, and tokenized traditional securities.
Firms with existing blockchain infrastructure can operate independent chains as long as they meet interoperability standards, while others can use the SEC’s public chain at a lower cost.
“In the future, there may be multiple chains for trade. Trading through DLT on all systems is connected by a shared ledger, which is expected to be completed soon,” Kongsakul explained.
The SEC has already approved four digital token projects under the new system, with two more under review, including green tokens and investment-based products. The regulator is also engaging with other stakeholders to explore tokenization opportunities in areas like soft power funding and sustainable finance, the report added.
The move fits into Thailand’s bigger push toward digital finance, even as crypto payments stay off-limits.
As previously reported by crypto.news, a pilot program announced by Deputy Prime Minister Pichai Chunhavajira last month in Phuket is gearing up to let foreign tourists pay with cryptocurrency, giving regulators a testbed to study real-world risks.
More recently, local media reported that Thailand’s government is quietly weighing the idea of issuing a stablecoin backed by government bonds. Finance Minister Pichai Chunhavajira reportedly discussed the concept with the SEC during a recent meeting, according to sources from Jinshi. However, there has been no official confirmation yet.
Last year, the Thai central bank joined the Hong Kong Monetary Authority to explore cross-border tokenization projects in an effort to develop use cases in areas such as trade finance.
