Bank Of Thailand Partners With IBM To Launch Blockchain-Based Government Savings Bond Platform

  • The new platform provides a real-time system with faster validation steps that reduce overall processing time.
  • After the launch of the platform, Bank of Thailand announced further plans to implement blockchain to all other government bonds.
IBM Canada head office building

IBM Canada head office building in Markham near Toronto, Ontario, photographed on October 30, 2018. JHVEPhoto/Shutterstock

On September 5, IBM announced the launch of its new and world first government bond savings platform in cooperation with the central Bank of Thailand (BOT), issuing $1.6 billion within just two weeks.

According to the announcement, the platform leverages blockchain technology on IBM Cloud in order to streamline the processes of bond issuance by cutting down on the number of operations required for a single transaction. The new protocol is said to provide a real-time system with faster validation steps that remove the need for manual reconciliation, reducing potential errors and the overall time frame of the process.

The new platform will also supposedly assist Thai investors in purchasing bonds up to the maximum value of their individual allocated quota from a single bank while reducing costs connected to reconciliation. Along with BOT and IBM Blockchain, six other institutions took part in the development of the new government bond infrastructure, including Thailand Securities Depository Co., Ltd, Thai Bond Market Association, and Public Debt Management Office with other selling-agent banks, including Bangkok Bank, Krungthai Bank, Kasikorn Bank, and Siam Commercial Bank.

“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,” said Patama Chantaruck, VP for Indochina Expansion and MD of IBM Thailand. “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.”

After the immediate success of the new platform, Bank of Thailand shared that they are planning to extend blockchain to all other government bonds, targeting both retail and wholesale investors. According to the announcement, 22 Thai banks and 15 companies previously participated in the electronic letter of guarantee (eLG) platform and network, which currently handles $300 million in guarantee letters.

As the new government saving bonds platform allows for faster bond issuance, decreased workloads, and reduced operational cost across the value chain, more pilots and applications of blockchain are being rolled out in order to bring transparency and efficiency to the finance sector in Thailand.

Related Coverage
France Completes 10-Month CBDC Trial
  • Led by Euroclear, the CBDC trial was conducted with the help of Banque de France, BNP Paribas, Crédit Agricole CIB, HSBC, and Société Générale.
  • As part of the test, almost 500 instructions in both primary and secondary markets were executed.
October 19, 2021, 3:11 PM
Banque de France


Bank of Thailand to Test Retail CBDC in Q2 2022
  • Both the public and private sectors have until 15 June to submit their feedback regarding the bank’s plans to issue a retail digital baht.
  • While the first tests of the CBDC have been scheduled for Q2 2022, the bank could fully implement the retail digital currency in the next three to five years.
IBM’s Blockchain-Based Food Trust Olive Oil Supply Chain Is Growing
  • Spanish olive oil producer Conde de Benalua and Argentinian olive oil supplier Rolar de Cuyo are the latest companies to join IBM’s Food Trust network.
  • IBM has claimed that 73% of consumers are ready to pay premium for products that are transparent about their production.