Thai Bond Market Association (TBMA) plans to launch Blockchain-powered solution
The Thai Bond Market Association (TBMA) will reportedly deploy a blockchain-powered solution on its registrar service platform.
The new registrar service platform is meant to provide a faster bond certificate issuance apart from boosting the liquidity of the secondary market as per the president of TBMA, Tada Phutthitada. The platform is scheduled to be introduced this year.
The issuance of bond certificates has remained slow despite the market liquidity been growing. This may cause serious limitations to the growth of corporate bonds in the secondary market. The platform will reduce the bond issuance time from current 7-15 days to 3-4 days, according to Mr. Tada.
He also said,
“We are trying to accommodate the market to grow without risks that may cause limitations.”
The president of TBMA also revealed that the new registrar platform is set to apply to the regulatory sandbox by the end of 2018. Not just this, it will also become the first fintech service applying to both regulatory sandboxes at the Thai Securities and Exchange Commission (SEC) and the Bank of Thailand (BoT).
The new platform will be built on a smart contract platform using a private blockchain. It will provide users with a digitized settlement database, a bond transaction verification, and a bond subscription system. It will also enable regulators, issuers, companies, and investors to have access to payments, interest rates, and other bond information.
The TBMA will eventually introduce ‘Bond Coin’ and further develop the platform. The ‘Bond Coin’ is a clearing and settlement system to be developed within the next year.
The executive vice-president of TBMA, Chaitat Prachuabdee, also revealed that the company is now exploring the idea of launching its own “utility settlement coin” in order support the digitized bond system.
As per the data, the average trading value of corporate bonds in the secondary bond market has seen significant growth over the past six years, reaching 5.09 billion baht ($152 million) in 2017.
The Thai Bond Market Association (TBMA) is a securities business related association under the Securities and Exchange Commission Act B.E. 2535. Its main purposes are to be a self-regulatory organization (SRO) for a fair and efficient operation of the bond market and to be an information center for the Thai bond market.
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