SEC and Bank of Thailand working on digital securities ecosystem

The Thai Securities and Exchange Commission (SEC) is working closely with the Bank of Thailand (BOT) to accelerate the development of the country's digital securities ecosystem. 

The aim is to reduce costs and increase the efficiency of capital market activities by the second quarter of 2025, with plans to launch digital bonds to enhance liquidity and make it easier for retail investors to access investment.

According to SEC deputy secretary-general Jomkwan Kongsakul, the commission is currently amending the law and issuing a supporting legal notice to facilitate the development of the digital securities ecosystem.

This includes the potential adoption of baht-backed stablecoins and the development of a central blockchain system to connect the entire digital securities ecosystem.

"We believe that the SEC has a baht-backed stablecoin which is no different from or close to the BOT's Programmable Money, which allows private companies to issue securities to each other," said Jomkwan. "We will have to discuss with the BOT before giving an opinion on supporting the development of the digital securities ecosystem."

The SEC also plans to discuss with relevant parties, including the Stock Exchange of Thailand, the Thai Bond Market Association, and financial institutions, to determine their roles and responsibilities in supporting and developing the digital securities ecosystem.

Anek Yooyuen, deputy secretary-general and SEC spokesperson, emphasised that all parties support the idea of developing a Digital Securities Ecosystem, which has been approved by the SEC Board. 

"The SEC has established a strategic plan for 2025-2027, which aims to promote supervision and development of the capital market in accordance with its objectives, while maintaining a balance in both supervision and development," he said.

The Digital Securities Ecosystem aims to achieve several goals, including:

• A 100% end-to-end process for raising capital and investing quickly, reducing costs and increasing transparency.
• Potential entrepreneurs can invest in developing their own systems, facilitating competition to create new services and innovations.
• Establishing standards for cross-network data exchange to connect various systems.
• Promoting shared services and central infrastructure to reduce the cost of developing small entrepreneur systems.
• Easier access to capital market products and services, including help to make illiquid or high-priced barriers more accessible.

"When technology plays a role in the Thai capital market, it is not seen as disrupting the SET, but rather creating benefits for market participants and the public in the digital era," said Jomkwan.

Anek added that the Digital Securities Ecosystem will promote sustainability and long-term wealth accumulation for individuals. "The SEC aims to drive economic growth through digital technology and create a sustainable capital market," he said.

The SEC's strategic plan also aligns with the National Strategy and National Economic and Social Development Plan, which focuses on achieving four main goals: trust and confidence in the capital market, capital markets as an important driver of economic growth through digital technology, a sustainable capital market, and financial well-being.

Overall, the development of a Digital Securities Ecosystem is expected to bring numerous benefits to Thailand's capital market, including reduced costs, increased efficiency, and enhanced liquidity.