Thailand’s SEC is launching a new platform that uses blockchain to tokenize and trade securities, boosting market efficiency and transparency.
The platform converts traditional securities into digital twin products, enabling lower-priced fractional trading and faster settlement.
The regulator has already greenlit several digital token projects and is exploring new token-based fundraising solutions with key corporate players.
Thailand’s Securities and Exchange Commission (SEC) is preparing to transform its capital markets with the launch of a tokenized securities trading system. According to a by the Bangkok Post on Monday, the new platform will harness blockchain technology to streamline trading processes and boost market transparency, offering investors a faster, more efficient way to buy and sell digital representations of traditional assets.
The initiative will allow companies that offer securities services to facilitate the sale of these tokens to their customers under strict regulatory oversight.
Digital Twin Products and Enhanced Liquidity
Jomkwan Kongsakul, deputy secretary-general of the SEC, stated that while the new tokenization platform is set to launch, traditional securities will not disappear. Instead, they will be converted into digital twin products that can be traded and transferred on a distributed ledger technology (DLT) system.
This conversion is expected to enable fractional trading at lower prices, increase liquidity through a larger pool of market participants, provide real-time trading, and reduce settlement issues.
The market watchdog has already approved four digital token projects and is reviewing two additional proposals to be incorporated into the platform.
Furthermore, the regulator is collaborating with five corporate institutions, engaging in preliminary consultations to explore opportunities in both soft power tokens and innovative green token fundraising solutions.
The SEC believes it is time for Thailand to explore the digital economy due to its increasing adoption across the globe. Kongsakul said that token investments recently gained traction and the country is preparing to better position its capital market for growth.
She further stated that the SEC plans to introduce new regulations to facilitate the issuance of electronic securities and online purchases of debentures.
“The SEC is leveraging technology to enhance efficiency in the capital market by promoting an electronic securities ecosystem. In the future, new regulations will be launched to facilitate the issuance of electronic securities and online purchases of debentures,” she said.
The regulator envisions a fully digitalized bond trading system covering both primary and secondary markets — including settlement, trading, investor registration, and return payments.
Interoperability and Future Blockchain Infrastructure
Once the blockchain-based system is operational, firms with their own DLT infrastructure may develop independent chains under a unified standard, provided interoperability is maintained.
Companies lacking existing DLT capabilities could access the SEC’s public ledger for a fee to build their own chains using the same standard, ensuring seamless integration across the market.
Kongsakul hinted that “there may be multiple chains for trade in the future”, but stressed that there will only be two types of securities issuance: digital-native products born from DLT and those converted into electronic securities.
In tandem with the tokenization platform, the regulator is also developing the “SEC Open API Data Platform” to provide investors with enhanced data analysis tools, ultimately aiding better investment decisions for all listed companies.
Meanwhile, while Thailand is gradually evolving into a crypto-friendly nation, digital assets are not yet fully recognized for payments. Currently, the country prohibits the use of cryptocurrencies like Bitcoin and Ethereum for transactions.
Nonetheless, in a bid to further embrace digital innovation, Thailand plans to launch a Bitcoin payment sandbox on the tourist island of Phuket later this year. However, the country has yet to disclose the exact timeline.