Thai SEC Launches DLT-Based Digital Asset Exchange

The Thai Securities and Exchange Commission (SEC) has launched a digital asset exchange system based on Distributed Ledger Technology (DLT), aiming to create a faster and more efficient market. This initiative is part of the SEC's broader strategy to embrace financial innovation and enhance participation from securities firms in digital token transactions.

The SEC's commitment to digitizing the entire bond trading system includes critical processes such as settlement, trading, and investor registration across both primary and secondary markets. The regulator aims to maintain a competitive landscape by allowing firms with their own DLT infrastructure to develop independent chains, provided they adhere to established interoperability standards. A comprehensive framework for data connectivity within the digital securities environment is essential to facilitate seamless transactions. Additionally, companies lacking their own chains can access a public chain offered by the SEC at a reasonable cost.

The Thai SEC has approved four digital token projects and is reviewing two additional projects, focusing on green tokens and investment-based tokens. Deputy Secretary-General Jomkwan Kongsakul emphasized the rising trend of token investments, prompting the regulator to advance its efforts in the digital age. The SEC is planning to deploy DLT to help develop the capital market in the digital age, with the goal of digitizing the entire bond trading system.

The SEC's commitment to innovation and digital transformation is expected to enhance the efficiency and competitiveness of Thailand's capital markets. By embracing DLT and digital token transactions, the SEC is positioning Thailand as a leader in the region's financial technology landscape.