- Thailand’s Ministry of Finance plans to issue a government digital bond totaling $150 million within two months.
- The G-Token, as the instrument is called, will allow investments starting from $3, making bonds more accessible to retail investors.
- The new token aims to offer a higher return compared to standard bank deposit rates in Thailand.
- Thailand’s Securities Exchange Commission is developing a trading system for digital bonds using blockchain technology.
- The move is intended to test public interest and improve liquidity in government bonds through fractional ownership.
Thailand’s Ministry of Finance will issue a $150 million digital government bond in the next two months to collect funds directly from the public. The initiative, announced by Finance Minister Pichai Chunhavajira, is part of an effort to widen access to government securities.
The new digital bond, called G-Token, will fall under the current budget’s borrowing plan. Patchara Anuntasilpa, director-general of the Public Debt Management Office, said that while the G-Token is used to raise funds, it is not classified as a typical debt instrument. The minimum investment required is just $3, far lower than previous government bond offerings. According to Chunhavajira, “Investors can invest with a small amount of cash for the new tokens. Investors will earn (a) higher return than bank deposits.” Present 12-month deposit rates at Thai banks are about 1.25% to 1.5%, below the central bank’s benchmark of 1.75%.
The G-Token’s key feature is its accessibility to retail investors by allowing purchases for as little as $3, compared to prior minimum limits of about $30. This matches the government’s goal to let people participate regardless of their financial status. Pichai Chunhavajira said the project is designed to create fractional ownership and expand the investor base.
Thailand previously tested blockchain bonds in a $6 million pilot five years ago, using the KTB wallet from state-owned Krunghthai Bank. The Ministry hopes this larger issuance will “test the market” and help improve bond liquidity by offering smaller trading increments.
At the same time, the Thailand Securities Exchange Commission (SEC) is creating a new digital trading platform, according to a report in the Bangkok Post. The platform will use distributed ledger technology, also known as blockchain, to streamline bond issuance, speed up investor registration, and allow tokens like the G-Token to trade on licensed digital asset exchanges.
The G-Token’s $150 million issue will serve as a market test, with the aim of encouraging more individual investors to participate in government bonds and increasing market liquidity through the ability to trade small bond fractions.
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