Bank of Thailand launches “world’s first” blockchain platform for bond issuance
The Bank of Thailand claims to be launching the world’s first blockchain-based platform for government savings bonds.
Thailand has a handful of government-backed blockchain projects
The central bank says it issued $1.6 billion on the platform with the cooperation of technology giant IBM.
Based on the IBM Cloud, the blockchain system has reduced the issuance process from 15 days to two days. Bank of Thailand also claims that the process reduced “operational complexity” and the overall cost of issuance.
Development of the platform involved a host of governmental and private stakeholders. The Public Debt Management Office, Thailand Securities Depository, Thai Bond Market Association worked alongside the central bank.
Financial institutions involved in the project include Bangkok Bank, Krungthai Bank, Kasikorn Bank, and Siam Commercial Bank. IBM acted as the technology and cloud partner throughout the process.
“Bank of Thailand’s success with the government savings bond project is the latest example of how blockchain technology can redefine the way businesses operate,” says Patama Chantaruck, managing director of IBM Thailand.
Bank of Thailand plans to extend blockchain to all other government bonds targeting both retail and wholesale investors.
Bond issuance isn’t the first blockchain-based infrastructure project from the country. In 2019 it launched a platform handling electronic letters of guarantee.
The system handles around $300 million in guarantee letters, with participation from 22 banks and 15 companies.
The Thai Customs Department also use TradeLens, a blockchain-based global trade digitisation platform.
