According to a report published on 28 July 2018, by Bangkok Post, the local news agency in Bangkok, The TBMA (Thai Bond Market Association) is expected to incorporate blockchain-based solutions to its registrar service platform. The major reason for implementing the financial technology is to escalate and boost growth in the secondary market sectors.
The registrar platform which is scheduled to launch this year aims to offer their clients a faster and efficient bond certificate issued in against of the insurance.
The major reason for the outcome of the platform is because the market liquidity has been increasing by leaps and bounds, while the bond certificates and their issuing practices have witnessed a slow motion of progress. At a certain point of time, it can cause to stop and disable the progress of corporate bonds in the secondary market. With their advancement to cheer the bond certificates issuance, the platform will come up with the process that will reduce the issuance time. This implies the issuance process that required a time period of 7-15 days on an average would now only take 3-4 days, suggested Mr. Tada Phutthitada, President TBMA.
It was imperative to find the cause that slowed down the anticipation in bonds but now after accessing the major point that is time-consuming we hope blockchain technology will help their clients appreciate faster and effective work done.
“We are rigorously looking for ways to grow and cut out any risk that causes our market and its productivity to limit.”
The TBMA president announced that he is expecting the new technology to be implemented on the registrar platform and launch by the end of 2018 and immediately apply to existing sandboxes. He adds after this alteration in his service they are going to be the first ever to apply financial technology (fintech) to regulatory sandboxes as well as their Thai Security and Exchange Commission (SEC) along with implementation extended to Bank of Thailand (BoT).
The platform has been built on a platform that works on a smart contract system. It provides private blockchain that will store all databases of users and stimulating them to move forward with more safety ensured. The technology is to provide them with a digitalize settlement database, a subscription of bonds system that will ensure bond verifications and transaction security as well.
It is going to involve issuers, companies, and investors as well to have their own access to insights like interest rates and payments with general bond information.
The company is even opening gates for further advancements as they are going to launch ‘Bond Coins’ which basically is a clearing and settlements system which is expected to come into the market by next year.
Chaitat Prachuabdee, Executive VP TBMA added the company is researching and developing over its own utility settlement coin, these all steps are taken to boost their digitalized bond system.
The trading market value of corporate bonds in the secondary market has witnessed a colossal growth over past six years, touching stake of 5.09 billion baht on an average in 2017 which rose up from 4.33 billion in 2016 which was mere 800 million seven years back in 2011.