The Securities and Exchange Commission of Thailand (SEC) is planning to launch a distributed ledger technology-based trading platform for securities firms to trade digital tokens. This move aims to capitalize on the growing traction of token investments and enhance efficiency in the capital market by promoting an electronic securities ecosystem.
The SEC is currently amending the law and issuing a supporting legal notice to facilitate the development of the digital securities ecosystem. This includes the potential adoption of baht-backed stablecoins, as well as the creation of a central blockchain system to connect the whole digital securities ecosystem.
The planned system features full digitalization of bond trading for both primary and secondary markets, covering settlement, trading, investor registration, and payment processes. It will support multiple chains with interoperability standards, allowing for flexibility in the choice of blockchain technology.
There will be two types of securities issued: electronic securities, which are items that begin trading as digital-native assets, and tokenized traditional securities.
This initiative aligns with the broader trend of financial institutions and governments embracing blockchain technology. By promoting the issuance of tokenized securities, the SEC aims to modernize Thailand’s financial market and attract more investment to the country.
