Thailand: From ‘Bond Coin’ to ‘Blockchain Token’
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Thailand: From ‘Bond Coin’ to ‘Blockchain Token’

It seems like Thailand is shooting into the crypto space with innovative volition. While the official currency of Thailand is the Baht (THB), cryptocurrencies are gaining a strong foothold in the nation.

THE THAILAND CRYPTO MARKET

Thailand is Popularly known as “James Bond Island”. The location of Thailand, that puts it on the pop culture map, has become a major tourist attraction. However, serene coastlines, the vacation experience and culture aren’t all that Thailand has to offer.

In the midst of the crypto developments, Thailand seems receptive to the new economic advancements. Much ahead of its other Asian counterparts, Thailand seems to be developing the crypto space early with more inclusive and organic regulation to lead their country forward in this new era.

BLOCKCHAIN TOKEN FOR INSTANT SECURITIES SETTLEMENT

A major securities markets body in Thailand is working upon a blockchain-based token that will power instant clearing and settlements of corporate bonds.

The Thai Bond Market Association (TBMA), after carrying research on blockchain technology for a bond registrar services platform, has revealed its plan to create a “Bond Coin”. Bond Coin is a custom token on a private blockchain between permitted participants including issuers and investors along with regulators and registered firms.

The bond registrar service platform will be the first phase for which blockchain technology is used for bond trading and information. The platform will be developed on a smart contract platform.

The TBMA has already received permission from the country’s securities market regulator, the Securities and Exchange Commission, to develop the blockchain in a three-phase project which is expected to launch in August 2018.

TBMA president, Tada Phutthitada, revealed,

“The first phase will involve the development of a bond registrar subscription system that will also be used to verify bond transactions. Even at the initial stage, the platform will be powered by smart contracts and will include a settlement information system, a subscription system and a verification system for corporate bonds.”

The blockchain platform will also provide an information fact sheet along with details that will include interest rates and payments, among other information. At the initial stage, the system will bring the operational process from 7-10 days down to 1-3 days.

The second phase is expected to take nine months. It will include the servicing of bond deposits before the final leg concludes with the development of Bond Coin over the next 12 months. It will be complete with a clearing and settlement system using the custom token.

Once it is completed, the new blockchain infrastructure will facilitate instant clearing and settlement of corporate bonds compared to the present two-day period.

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Aayushi Dhawan
Aayushi Dhawan is an avid reader, researcher, crypto writer and a passionate student. While pursuing her graduation in commerce at SRCC, she realized that writing and Finance give her immense pleasure. She is currently pursuing her post graduation in Commerce (Finance) from Department of Commerce, Delhi School of Economics and keeps on exploring the intricacies of research, her biggest strength.