Thailand: tokenization of government bonds will allow retail investors to enter the digital economy

Thailand: tokenization of government bonds will allow retail investors to enter the digital economy

Thailand once again shows that it is on the cutting edge of innovation in finance. The country's finance ministry plans to issue $150 million worth of digital investment tokens in the coming months to allow retail investors to participate in the financing of sovereign debt. The move represents a major breakthrough in access to public finance and opens the door to a wider range of investors in an area that has previously been reserved for institutions or wealthy individuals.

The new project, dubbed "G-tokens", will be launched within the next two months after the Thai cabinet approved the plan. These digital tokens will allow the general public to buy government bonds easily and affordably, starting from as little as $3. The director general of the Public Debt Management Office, Patchara Anuntasilpa, stressed that this is not a cryptocurrency, but a safe and regulated instrument that will be tradable on licensed digital asset exchanges, available only to Thai permanent residents.

"One of the main benefits of the token is that it allows more retail investors to become part of the digital economy," explained Pichai Chunhavajira, Thailand's finance minister. "Investors will be able to earn higher returns than conventional bank deposits, which are currently very low." Current interest rates at Thai banks are only 1.25% for 12-month term deposits, while the government is looking for more efficient ways to fund public projects and budget borrowing.

The move is particularly significant given that retail investors have so far been excluded from most major investment products in Thailand, which primarily target institutional and wealthy investors. The tokenization of government bonds thus represents an egalitarian step towards broader financial inclusion.

The finance minister also pointed out that the initial token issuance is for "market testing" and that investors can expect higher returns than standard bank deposits. The exact amount of returns has not yet been disclosed, but the move is in line with a growing trend of global interest in tokenised assets.

In addition, it is important to stress that this is not a cryptocurrency. The tokens will be tradable on licensed digital asset platforms, which ensures their regulation and security. The move is part of Thailand's broader plan to digitise financial services, which has previously included plans for a securities trading system for institutional investors.

The value of global tokenized bonds is expected to double to $450 million in 2025, according to analysis by RWA.xyz, a platform that focuses on real asset analysis. Currently, the global value of tokenized bonds is already $225 million, and this trend continues to be on the rise.

Thailand is thus confirming its status as a pioneer in digital finance and showing that even government bonds can be made accessible to the general public through innovative technologies. This move not only expands opportunities for retail investors, but also reinforces Thailand's position as a modern and open economy in the era of digital transformation.

*This is not an investment recommendation.

Coingarage team