The Bank of Thailand has launched the world’s first government savings bond backed by IBM’s blockchain technology. According to IBM’s announcement on the 5th of October, the central bank sold $1.65 billion worth of savings bonds within two weeks of launch.
As stated in the announcement, the new blockchain technology will help investors to faster bond issuance processes. Formerly taking 15 days, the issuance process will now reduce to two days. Notably, the sale of government savings bonds was a time-consuming process in the past.
In addition, issuers, investors, registrars, underwriters, and key ecosystem participants will now benefit from the newly improved bond issuance process. With the help of the IBM blockchain technology, redundant validation during issuance will be minimized.
In addition, the efficacy of the blockchain will also reduce the complexity of the issuance, along with the cost of issuing bonds and reconciliation.
IBM partnered with the Bank of Thailand and seven other institutions to achieve the newly improved blockchain-backed bond.
Commenting on the new partnership, the vice president for Indochina Expansion and managing director of IBM Thailand said:
“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.
Furthermore, the announcement revealed that the central bank currently has plans to extend blockchain technology across all other government bonds for retail and wholesale investors.
Image Credits: Pixabay
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