SET mulls partners for digital assets

SET mulls partners for digital assets

Digital assets. (Bangkok Post file photo)
Digital assets. (Bangkok Post file photo)

The Stock Exchange of Thailand (SET) is open to joining with local and foreign partners to build up the digital asset ecosystem, with a focus on developing three asset-backed digital tokens in the initial stage.

Under a plan to launch the digital asset exchange next year, the bourse will emphasise the development of three asset-backed digital tokens in the initial phase, said SET executive vice-president Kitti Sutthiatthasil.

The asset-backed securities for digital tokens can be categorised into existing securities, shares listed on foreign stock exchanges and R&D projects of major companies.

"The SET will also support development ideas for the digital tokens, so companies and startups who have ideas can discuss them with the bourse," Mr Kitti said. "[The bourse and startups] will study together for the process of project development of digital tokens."

Jirayut Srupsrisopa, co-founder and chief executive of Bitkub Capital Group Holdings, said the SET was open to discussion when the company asked whether the bourse was interested in a partnership.

Under the royal decree on digital assets that took effect on May 14, 2018, there are four types of secondary business intermediaries: digital exchanges, brokerage firms, dealers and token portal service providers, also known as initial coin offering (ICO) portals.

Exchanges, brokers and dealers are required to apply for licences from the Finance Ministry, while ICO portals must be approved by the Securities and Exchange Commission.

The SET will take 3-4 months to hold workshops with market participants, including regulators, issuers, investors, custodians and other stakeholders, to prepare for the digitised operations.

Mr Kitti said the framework for digital tokens that the SET is studying covers securities and non-securities. For securities, they are separated into conventional assets comprising securities, derivatives, currencies and commodities, while alternative assets consist of real estate, private equity, hedge funds and infrastructure funds.

Asset-backed digital tokens will cover stable coins and securities tokens, while the non-securities segment will cover cryptocurrencies and utility tokens, which are not asset-backed, Mr Kitti said.

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