Thai Bond Market Association (TBMA) to Open Blockchain Bond Issuance Platform
Thailand has long been one of the most respected countries in the cryptocurrency community for both their commitment to the development of blockchain technology and their cooperation with the cryptocurrency trading trend as it continues to develop in their country and globally. But in the latest move by the Thai Bond Market Association, also known as the TBMA, it has become even clearer that the blockchain technology being deployed in Thailand is here to stay—and its adherents will continue to expand on its already illustrious history.
The association announced on July 28th of this year that it would be rolling out an entirely blockchain-powered registrar service solution on its registrar platform. According to the Bangkok Post, the coalition is rolling out the system as a part of a continued effort to embrace blockchain technology as it grows immensely in popularity within their native country of Thailand.
The benefits to this integration of blockchain technology are relatively obvious. Blockchain can help to make the process faster and more efficient when bond certificates are being issued, a backend process which continues to be essential to the operations of the TBMA. Blockchain storage of information is also a more secure way to store, manage, and transmit information across a network. It is clear at this point that the TBMA will use the budding blockchain integration to further maximize the efficiency of the backend processes which drive their bond business.
Bond Issuance Limitations
The time restraints associated with issuing bonds is a clear problem facing the industry. While Thai liquidity in the bond market has been larger than ever and continues to grow, the speed at which bonds are issued remains relatively slow. This creates a massive issue, as it deters individuals from trading quickly or speculating in the bond market, for fear that their investment may be offset by the time the bond certificate is officially issued.
But speedier methods of issuing bonds are difficult to come across. For some agencies, the possibility that increases to speed may lead to regulatory problems or security risks means that the status quo is the only way to go. As it stands, bond issuance is a process which takes, on average, around 10 days to occur. This spells trouble for the market, and companies looking to establish themselves in the changing financial landscape are looking for new ways to innovate without causing undue problems.
Unsurprisingly, the distributed ledger technology known as the blockchain may provide several valuable solutions to the problems being faced within the bond certificate issuance sector of the Thai economy. Notably, the blockchain method of transmitting information will lead to a quicker process, while the immutability of information on the blockchain, as well as the security of the operation, will result in little-to-no additional risks being applied to the customer or the issuer.
The TBMA has also expressed their interest in establishing a clear ecosystem on the blockchain, complete with their own “Bond Coin,” by the end of the next year.