Thailand’s Bond Coin To Offer Quicker, Easier Securities Settlement Process
Bond Coin Is Coming To Thailand To Offer Faster Securities Settlement
The cryptos are definitely changing the market for the better and that can be easily seen in Thailand. A new blockchain project that will be launched in the country, Bond Coin, will make bond settlements faster.
This new project has already received the consent of the national Security and Exchanges Commission and it will be developed by the Thailand Bond Market Association (TBMA). According to the local media, the main focus of the settlement system is to offer a swift clearing and a settlement system for how corporate bond transactions are made using the blockchain technology.
Increasing The Efficiency Of The Bond Market In Thailand
One of the main goals that is being the focus of Bond Coin is to improve the transparency of the market, as well as diminish the operational processes, which can take up to 7 or 10 days currently, to 1 or 3 days.
If the beginning of the project is highlighted by the Thailand SEC soon, the first phase of the Bond Coin project might start in August. It will be hosted on a private blockchain and include an information system for bond settlement, as well as involving the development of a bond registry platform.
As soon as this phase is completed, anyone registered in the Thailand Bond Market will be able to use it. The list of potential clients of the company includes regulators, companies, issuers and general investors.
After that, a program of nine months will be made to start up the platform. It will be handled by the Thailand Securities Depository (TSD).
The Bond Coin
One important aspect of the platform will be the “Bond Coin”, the token that will be used there. The Bond Coins will be introduced on the last phase of the project as means to pay for the settlement system fees.
The adoption of an original token was a move designed by the company to push third party financial institutions away from the system, which can make it more efficient and cheap. By using the potential of this whole new system, the bond issuers can use information on the blockchain in real time and the investors can check their investments.
The estimates of the company state that it can take up to 24 months for the project to become complete. While there is a chance that problems might appear along the way, the company is fairly confident that this initiative can represent a change for the better in this industry.
Also, it can be a significant lift to the bonds market that has the potential of bringing new bond issuers in and even more investors.