Thailand to pilot 5 billion baht of tokenised bonds

Sandbox programme, scheduled to be launched in 2025, aims to democratise investment and boost liquidity

 

The Thai government is set to launch a 5 billion baht pilot programme for new tokenised bonds in the 2025 fiscal year, opening up investment opportunities to retail investors. 

 

The bond, which will not require asset collateral, will be traded on a dedicated digital platform.

 

Finance Minister Pichai Chunhavajira announced that the ministry is developing tokenised bonds, designed to be accessible to a broader range of investors.  The initial 5 billion baht issuance will serve as a sandbox project, allowing the ministry to assess its viability and impact.

 

Currently under development, the scheme's details, including procedures and trading mechanisms, will be finalised and submitted to the Bank of Thailand for approval. Following the launch, the market’s response and overall performance will be closely monitored.

  



 


“We will enable retail investors to participate, regardless of their financial standing,” Pichai explained. “They can invest any amount, buying and selling directly on the platform, bypassing traditional bank counters.  Numerous platforms are available, and with private sector involvement, we anticipate lower management costs, enabling investments from as little as 1,000 baht.”


 

This innovative financial instrument offers the government another avenue for raising capital, similar to conventional bond issuances, to address budget deficits and refinance existing debt.  Traditionally, large bond allocations are often channelled through institutions or high-net-worth individuals, sometimes resulting in limited market liquidity.
  

Existing platform technology can be adapted for bond tokenisation.  Whether this new approach will eventually supersede traditional government bonds remains a question for the future, pending a thorough evaluation of its advantages and disadvantages.

 

In a further move to streamline investment, the Ministry of Finance is exploring the potential merger of the Securities Act and the Digital Assets Act.  This would simplify regulatory oversight, as both types of investments often draw from the same pool of capital.

(2025/02/14-00:00)