The Bank of Thailand has successfully issued the world’s first blockchain-based government savings bond platform.
This was achieved through a collaboration with computing giants IBM. Within a two week period, the central bank was able to issue and sell $1.6 billion worth of savings bonds to investors.
By utilizing blockchain technology on the IBM cloud, investors will be able to have their bonds issued in two days. A process that usually takes fifteen days.
Looking at the past, the sale of government bonds in Thailand was a complex, multiparty, time-consuming process totally dependent on a non-real-time system, with identical validation steps and manual system of reconciliation usually prone to data errors.
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The major benefits of using blockchain technology for issuing government bonds includes faster bond issuance for investors, decreased processing time and workload for issuers, underwriters and registrars. Blockchain technology has brought greater transparency and reduced operating costs across the entire ecosystem.
Patama Chantaruck, VP for Indochina Expansion and MD of IBM Thailand said:
“Bank of Thailand’s success with the government savings bond project is the latest example of how blockchain technology can redefine the way businesses operate by simplifying complex processes resulting in fast, transparent, secured and efficient multiparty collaboration,”.
Patama added:
“IBM is proud to bring our world-class blockchain platform and IBM Cloud to support Bank of Thailand, and work side-by-side with them in achieving this important milestone for Thailand’s financial industry.”
The world’s first blockchain-based savings bond platform was made possible through a collaboration between eight institutions including Bank of Thailand (BOT), Public Debt Management Office, Thailand Securities Depository Co., Ltd, Thai Bond Market Association and selling-agent banks, including Bangkok Bank, Krungthai Bank, Kasikorn Bank, and Siam Commercial Bank, with IBM Blockchain as technology and cloud platform partner.