Thailand’s SEC set to Launch Blockchain-Based Trading Platform for Digital Tokens

The Thailand’s Securities and Exchange Commission (SEC) is getting ready to launch a distributed ledger technology (DLT)-based platform in order to assist security agencies in trading digital tokens.

The move aims to improve market efficiency, liquidity, and accessibility for securities firms. The platform will further enable companies to trade digital tokens, with four digital token projects already approved and two more in the pipeline for green tokens and investment-based projects.

The SEC DLT Market Effectiveness 

Jomkwan Kongsakul, Deputy Secretary-General of the Securities and Exchange Commission (SEC), emphasized the importance of enhancing the capital market’s effectiveness through the promotion of an electronic securities ecosystem.

Notably, the effort is driven by the growing popularity of token investments, prompting the regulator to leverage technology in supporting securities companies. The goal is to help these companies tap into their extensive investor networks, ultimately boosting market efficiency and liquidity.

Furthermore, Kongsakul added that the SEC plans to introduce new regulations to streamline the issuance of electronic securities and enable online debenture purchases. This move aims to facilitate corporations’ access to medium-to-long-term funding through debentures, a type of debt instrument.

However, although the SEC has not disclosed the specific blockchain networks it will utilize, it has announced that the system will feature interoperability across multiple blockchain platforms, ensuring seamless transactions and adherence to standardized transaction protocols.

Thailand SEC DLT Integration

Kongsakul revealed that a unified ledger will connect all trading systems, with the project nearing completion. This framework supports two security types: tokenized traditional securities, existing financial instruments converted into digital assets, and electronic securities, newly created digital-native assets designed specifically for blockchain networks.

This development reflects Thailand’s digital asset market shift towards embracing institutional-grade, regulated tokenized securities and investment products.

The SEC’s integration of Distributed Ledger Technology (DLT) tackles inefficiencies in traditional bond trading, where issuance-to-trading timelines currently range from 7 to 14 days. By leveraging cutting-edge technology, the regulator will help streamline the bond issuance process and enable real-time trading.

Moreover, this upgrade should significantly enhance the overall efficiency and speed of bond trading in Thailand’s capital market.