Thailand Taps KuCoin as First Global Exchange for Tokenized Bond Program

The Ministry of Finance of Thailand has tapped Kucin as the first international crypto exchange to become a member of a consortium to support its G-Token Initiative, the world’s first publicly offered tokenized-State bond.

Kucin Thailand, the locally regulated arm of the Exchange, will handle subscriptions, repayments and offers alongside partners Xspring Digital, Six Network and Krungthai Xspring.

The bonds will initially be mentioned on recognized domestic stock markets, with the potential for a list on the worldwide platform of Kucin, pending approval of regulations.

The first issue comes down to 5 billion baht (US $ 153 million), where the program was aimed at broadening the access of the retail investors to the debts of the sovereign.

“Our selection as the inaugural global exchange for the G-Taken program of Thailand comes from our strong regulatory foot in the country,” said a spokesperson for Kucain Decrypt. “This local presence enabled us to form a strategic consortium with Thai partners, and positioned us as a trusted employee of the Tokenized Bond Initiative of the Ministry of Finance.”

That said, challenges continue to exist in the confidence of regulators, they noticed, referring to “robust safety against cyber threats” and “AML and KYC -compliance in a decentralized environment” as important obstacles, in addition to volatility risks that differ from traditional bonds.

With regard to the liquidity of the secondary market, Kucin noted that Tokenized Activa is still being confronted with challenges in “connecting global liquidity and seamless participation by public investors”, which is planning to tackle the exchange through both domestic Thai Beurzen.

Thailand approved The tokenized bond program in May, and became the first government that offers sovereign debts as digital tokens.

The initiative is intended to open bond -investments for smaller investors and follows January Calls through Thaksin ShinatraThe actual head of the reigning party of Thailand, for Stablecoins supported by the government; His daughter, Paetongtarn Shinatra, is now prime minister.

Supported 1: 1 by De Baht with fixed rates, the bonds let investors participate in ‘a small amount of cash’ and earn more than bank deposits, said Finance Minister Pichai.

“The G-Loken initiative absolutely serves as a template for other governments,” said Kucin, and noted that it could inspire comparable models by “combining the reliability of bonds supported by the government with blockchain’s efficiency, transparency and accessibility.”

The exchange will continue to build up a localized presence in other regulated financial jurisdictions for comparable real-world assets initiatives, “while offering support for connectivity and technology infrastructure worldwide,” said it.