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SEC updates progress of the blockchain-based bond offering under regulatory sandbox



Wednesday 24 June 2020 | No. 121 / 2020


Bangkok, 24 June 2020 – The SEC has announced the latest progress in the regulatory sandbox project for testing and implementing blockchain technology in the corporate bond offering process of the Thai Bond Market Association (ThaiBMA). The regulatory sandbox framework supports the testing and development of innovations to facilitate service provision in the capital market. Currently, two companies have already offered corporate bonds for sale under the testing process at the combined value exceeding 1 billion baht.

On 11 December 2019, the SEC Board passed a resolution approving ThaiBMA as a licensed securities depository under the regulatory sandbox project whereby blockchain technology is implemented to enhance the speed and efficiency of the trading process of corporate bond. Currently two companies have issued and offered corporate bonds for sale using the blockchain system of ThaiBMA, namely (1) Toyota Leasing (Thailand) Co., Ltd. offering corporate bonds exclusively to institutional investors and high net worth investors at the amount of 500 million baht for a maturity term of 11 months and 29 days, and (2) Kasikorn Bank Public Company Limited, offering a private placement of foreign currency denominated corporate bonds to domestic institutional investors at the value of 17 million Euro for a 3-month maturity term.

So far, the testing results of the blockchain based bond offering system under the regulatory sandbox project have not detected any technological issues or obstacles that may affect investors. The SEC however will continue overseeing the testing of the system closely.

The implementation of blockchain technology to support capital market processes under regulatory sandbox is one of the policies in alignment with the 3rd Capital Market Development Plan (2017-2021), featuring Distributed Ledger Technology (DLT) initiated by the SEC. It is expected to enhance efficiency and reduce costs for market participants in all sectors, facilitate equal access to financial services for all target groups, and strengthen competitive edge of the Thai economy.

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Building Confidence in the Capital Market
NEWS
Securities and Exchange Commission
Corporate Communication and Investor Service Department
Tel. (66)2033-9502-5 E-mail: press@sec.or.th
No. 121 / 2020 Wednesday 24 June 2020
SEC updates progress of the blockchain-based bond offering under regulatory sandbox
Bangkok, 24 June 2020 – The SEC has announced the latest progress in the regulatory sandbox project for testing and implementing blockchain technology in the corporate bond offering process of the Thai Bond Market Association (ThaiBMA). The regulatory sandbox framework supports the testing and development of innovations to facilitate service provision in the capital market. Currently, two companies have already offered corporate bonds for sale under the testing process at the combined value exceeding 1 billion baht.

On 11 December 2019, the SEC Board passed a resolution approving ThaiBMA as a licensed securities depository under the regulatory sandbox project whereby blockchain technology is implemented to enhance the speed and efficiency of the trading process of corporate bond. Currently two companies have issued and offered corporate bonds for sale using the blockchain system of ThaiBMA, namely (1) Toyota Leasing (Thailand) Co., Ltd. offering corporate bonds exclusively to institutional investors and high net worth investors at the amount of 500 million baht for a maturity term of 11 months and 29 days, and (2) Kasikorn Bank Public Company Limited, offering a private placement of foreign currency denominated corporate bonds to domestic institutional investors at the value of 17 million Euro for a 3-month maturity term.

So far, the testing results of the blockchain based bond offering system under the regulatory sandbox project have not detected any technological issues or obstacles that may affect investors. The SEC however will continue overseeing the testing of the system closely.

The implementation of blockchain technology to support capital market processes under regulatory sandbox is one of the policies in alignment with the 3rd Capital Market Development Plan (2017-2021), featuring Distributed Ledger Technology (DLT) initiated by the SEC. It is expected to enhance efficiency and reduce costs for market participants in all sectors, facilitate equal access to financial services for all target groups, and strengthen competitive edge of the Thai economy.

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