The Thai Bond Market Association (TBMA) is all set to implement blockchain enabled features into its registrar based bond service fintech platform for simplification and expansion. In order to improve the growth in the secondary market, there are profitable strategies going on with a good speed to utilize this practice during the current year.
The platform will run on smart contract deploying a private blockchain wherein only registered users can access to such services as a database of digitized settlements and verification of bond transactions. Issuers, registered companies, regulators, and investors will need to register to be allowed to use the platform. A bond subscription system, bond settlement information, and a verification system for bond transactions are among the features planned for the platform.
Tada Phutthitada, President of TBMA believes that with the increasing market liquidity over the past 6 years and analyzing the growth rate certain steps need to be taken for handing out the bonds in the secondary market to match the same pace. This platform hopingly has the potential to result in the release of the corporate bonds in the secondary market which is being restricted in their growth by limiting itself. Last year, the country reached $152 million in 2017, $4.3 million in 2016 in the average trading value of corporate bonds and a major increase $800 million seen in 2011.
In the future, the company is expecting to conduct the operation of issuing the bonds in two days instead of 3-4 days that will initially start issuing bond certificates which earlier it was taking a time span of 7-15days.
Thailand like Japan and Malta is firm to use Blockchain Technology which will enable the users during the initial stage of the platform to check interest payment, interest rates, and other conditions on a bond fact sheet. Incoming nine months, the new phase is projected to start tuning bond deposits. This phase of development is also expected to introduce the “utility settlement coin” (Bond Coin), a clearing, and settlement system until the completion of the last stage which will take another one year to support the digitized bond system.