In an announcement, IBM said that the central bank, Bank of Thailand (BOT), has launched world’s first blockchain-based platform for government saving bonds with an issuance worth $1.6 billion USD in two weeks.
Earlier, what used to be complex and time-consuming will have reduced operational complexity and faster bond issuance with the platform.
As per the Thai Bond Market Association, the outstanding Thai bond market amounted to $421 billion USD in December last year.
The blockchain technology will aim at reducing redundant validation and minimize costs of reconciliation, which will cater issuers, investors, registrars, and underwriters. Alongside, there is now room for decreased workload for issuers.
Being secured with the IBM cloud, the time duration will reduce from 15 days to a mere 2 days. Thai investors can purchase bonds from one single bank, and to the maximum value of their individual allocated quota.
The Thai government also plans to extend the platform to both retail and wholesale investors.
In a statement, the VP for Indochina expansion and Managing Director of IBM Thailand, Patama Chantaruck said that the BOT’s success with the government savings bond project will serve as an example for blockchain technology’s way to represent businesses- by simplifying complex processes and faster, secured multiparty collaboration.