Bank of Thailand launched the world’s first government savings bond on a blockchain platform. IBM Blockchain collaborates with Thailand’s central bank to offer the infrastructures needed for operation. In the first two weeks of operation, a total of $1.6B was issued on the platform.
Combining Cloud and Blockchain Services
The new collaboration between BOT and IBM includes both the cloud and blockchain infrastructures from the tech giant. IBM will provide its cloud services as the underlying network for the blockchain infrastructure in the newly launched savings bond.
When big traditional organizations like BOT tap into blockchain for doing their businesses, the ecosystem sees a sign of hope for growth.
“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.”
The increased speed of bond issuance is one of the most benefits of using blockchain. A process that took 15 days to complete now can be done in just two days, for example. Blockchain also decreases the operational complexity in bond issuance and the overall cost.
The new blockchain-based government savings bond platform is the result of a partnership between multiple organizations.
It “involved collaboration among eight institutions including 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,” according to IBM Thailand.
Using blockchain and cloud-based services for issuing government binds helps all of the stakeholders in the process. Investors will enjoy faster issuance, and the workload for issuers, underwriters, and registrars will be reduced, too. Greater transparency and reduced costs for the overall process is the other benefit.
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