The Thai government has announced that small investors will be able to purchase government bonds starting at $3.
According to The Bangkok Post, the Thai Ministry of Finance has unveiled a plan to issue $150 million worth of digital investment tokens, opening up the government bond market to small investors. Finance Minister Pichai Chunhavajira presented the initiative during a briefing after the government approved the plan, specifying that these tokens would be launched within the next two months.
The so-called “G-tokens” will be used to raise funds from the public as part of the current budget loan plan. Patchara Anuntasilpa, Director General of the Public Debt Management Office, clarified that these are not traditional debt instruments but rather “an innovation” in the country’s financial landscape.
“One big selling point of the token is that it allows more retail investors to become part of the digital economy,” he said, adding that for as little as $3, “they can invest in government bonds.”
Until recently, small Thai investors were limited or excluded from large investment offerings, which were primarily targeted at institutional and wealthy investors. Minister Pichai stated that this initial token issuance is designed to “test the market” and that investors will receive returns higher than those from bank deposits, although he did not specify the exact rates.
Commercial banks in Thailand offer low interest rates to savers, currently 1.25% for a 12-month fixed deposit, lower than the rates set by the central bank, which had kept rates high until recently despite growing economic challenges.
The tokens will be tradable on licensed digital asset platforms, which will not be accessible to non-Thai residents. Last February, the Thai securities regulator revealed plans to launch a trading system for tokenized securities aimed at institutional investors.
According to the asset tokenization analytics platform RWA.xyz, the value of tokenized bonds globally has recently increased, currently amounting to $222.5 million.
