Thailand’s Securities and Exchange Commission (SEC) is set to introduce a blockchain-based debt instrument trading system, using distributed ledger technology (DLT) to modernize capital markets. This move plans to encourage securities firms to engage in digital token trading while enhancing regulatory oversight in the digital space.
Thailand SEC’s Blockchain Venture
Jomkwan Kongsakul, deputy secretary-general of the SEC, highlighted the growing investor interest in tokenized assets. According to local media reports, the regulator has already approved four digital token projects, with two more under review, primarily focusing on green tokens and investment-based assets. Additionally, five other entities are in early-stage discussions with the SEC, exploring innovative fundraising solutions, including soft power tokens and green initiatives.
The SEC is pushing for a fully digitized bond trading ecosystem, covering issuance, settlement, investor registration, and return payments, all powered by blockchain technology.
“The SEC is committed to leveraging advanced technology to enhance efficiency in the capital market,” said Ms. Jomkwan. “New regulations will facilitate the issuance of electronic securities and enable online purchases of debentures, making the system more accessible and transparent.”
Currently, purchasing bonds from the primary market can take up to two weeks before they become tradable in the secondary market. Issues such as high costs, illiquidity, and manual paperwork delays also persist. By integrating blockchain, the SEC aims to streamline processes, minimize errors, and reduce capital market bottlenecks.
SEC’s Blockchain Integration in Securities Trading
The SEC’s blockchain-powered system will not limit competition. Companies with their own DLT infrastructure can operate independent chains as long as they comply with interoperability standards. Firms without proprietary blockchain solutions can utilize the SEC’s public chain at a competitive cost, ensuring a standardized digital securities ecosystem.
“In the future, multiple blockchains will facilitate trade, all interconnected through a shared ledger,” Ms. Jomkwan explained. “This approach will enable real-time trading, fractional ownership, and improved market liquidity while reducing settlement inefficiencies.”
The regulator envisions a dual-structure securities market where digital-native securities, issued directly on blockchain, will coexist with traditional assets converted into digital form for more efficient trading. Moreover, the SEC is also developing an Open API data platform for listed companies that allows investors to access real-time financial data and make informed decisions.
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