Implementation of a debt instrument trading system using distributed ledger technology

The Securities and Exchange Commission of Thailand (SEC) is preparing to implement a debt instrument trading system using distributed ledger technology (DLT), aiming to encourage securities firms to engage in digital token trading and enhance market efficiency.

Jumkwan Kongsakul, deputy secretary-general of the SEC, said that they have approved four digital currency projects and are currently evaluating two projects focusing on green digital tokens and investment initiatives.

The SEC seeks to reduce gaps in the traditional bond market such as long bond settlement periods, high costs, and lack of liquidity.

The new system will provide comprehensive digitalization covering trading, settlement, investor registration, and return assessment.

Competition will remain open to companies with their own DLT-based infrastructure, provided that interoperability is ensured according to a unified standard.

Small companies will also have the opportunity to use the SEC’s public chain at low costs.

The approach aims to enhance liquidity by facilitating fractional trading, reducing costs, and enabling real-time transactions while reducing settlement issues.

As part of its future plans, the SEC is developing the “SEC Open API” platform to provide comprehensive data on listed companies, helping investors make smarter investment decisions.

As part of its expansion into the cryptocurrency market, Thailand is considering launching a pilot crypto payments scheme in Phuket in 2025.

The project aims to facilitate tourists’ transactions using cryptocurrencies with automatic conversion to Thai baht.

Despite these initiatives, Thailand faces regulatory challenges including the Bank of Thailand’s opposition to decentralized cryptocurrencies, restrictions on foreigners’ access to local trading platforms, and tax reforms that could impact foreign investments.

Posted using Tribaldex Blog