Thai Bond Market Association to Setup Blockchain-Based Register

According to reports monitored from the Bangkok Post over the weekend, the Thai Bond Market Association (TBMA) is working on plans to launch a blockchain system for its service registration platform.

According to the reports quoting the TBMA President Tada Phutthitada, the service registration platform scheduled to begin this year is aimed at speeding bond certificate issuance in the country while also strengthening the secondary market

The Bangkok Post says that the process of issuing bond certificates is slow; this despite the fact that market liquidity has been registering impressive growth in recent times. Analysts told the Post that the situation could really impede the growth of corporate bonds in the secondary market. Mr. Tada is optimistic that the blockchain system will cut the current duration for the issuance of bond certificates from 7-15 days to just 3-4 days instead.

The Post quoted Mr. Tada as saying, “We are trying to accommodate the market to grow without risks that may cause limitations.”

Tada outlined that the service registration platform set to launch before the end of the year will become the first FinTech blockchain tool that both the Thai Securities and Exchange Commission (SEC) and the Bank of Thailand (BoT) will be using.

The TBMA President revealed that the blockchain will feature a smart contract platform allowing users access to a digitalized settlement database as well as a bond subscription system. The system which will also offer mechanisms for the cross-checking of bond transactions will grant both individual and institutional users access to relevant information regarding interest rates and bond payment details.

According to figures released by the Thai Bond Market Association (TBMA), growth in the secondary market has been very impressive since 2012. The data shows that just last year, the market peaked at $152 million, representing a $22 million increase from the preceding year and $24 million over what the market was seven years ago.