Revolutionizing the Thai Bond Market: Blockchain-Based Registrar Services Set to Streamline Transactions

Introduction to a Game-Changer

The Thai Bond Market Association (TBMA) is shaking things up by introducing a blockchain-powered registrar service platform. According to a recent report by the Bangkok Post, this innovative system is slated to launch later this year. Not only will this initiative fast-track the bond certificate issuance process, but it’s bound to increase liquidity in the ever-important secondary market. Spoiler alert: It’s about time!

The Need for Speed: Faster Bond Issuance

As TBMA President Tada Phutthitada points out, despite the increasing liquidity in the market, the sluggish speed of bond certificate issuance has been a major bottleneck. Currently taking anywhere from 7 to 15 days, the new platform aims to slice this timeframe down to just 3 to 4 days. Because who wouldn’t want their bond certificates served up faster than instant ramen?

Plunging into Regulatory Sandboxes

But wait, there’s more! This new registrar service is set to wade into the deep end of regulatory sandboxes by the end of 2018. It will pop up in both the Thai Securities and Exchange Commission (SEC) sandbox and the Bank of Thailand (BoT) sandbox. Talk about making a splash in two different pools!

Smart Contracts and Private Blockchain: The Tech Side

Utilizing a smart contract platform and private blockchain, the registrar service aims to provide users with a plethora of digital perks. This includes a digitized settlement database, a bond subscription system, and thorough transaction verification processes. Imagine an all-you-can-eat buffet of bond information, with interest rates, payments, and more available at your fingertips!

What’s Next? Introducing Bond Coin

Looking ahead, TBMA is not stopping at just the registrar platform. Plans are in the pipeline for a ‘Bond Coin’, a clearing and settlement system expected to take shape within the next year. And as TBMA’s Executive Vice-President Chaitat Prachuabdee suggests, they’re even toying with the idea of launching their own utility settlement coin. Because if you’re going digital, why not go big or go home?

The Rise of Corporate Bonds

The need for this innovation seems evident as well, given the impressive surge in the trading value of corporate bonds. The average trading value soared from 800 million baht (around $24 million) in 2011 to an impressive 5.09 billion baht ($152 million) by 2017. It’s clear the Thai bond market is thriving, and it seems TBMA is keen to get on board before it’s too late. Keep those bonds rolling!