It is reported that Thailand will tokenize $150 million worth of government bonds for retail investors.

Source: Cointelegraph Original text: "Reports say Thailand will tokenize $150 million worth of government bonds for retail investors"

According to reports, the Thai Ministry of Finance plans to issue digital investment tokens worth $150 million, allowing retail investors the opportunity to purchase government bonds.

The Bangkok Post reported on May 13 that Finance Minister Pichai Chunhavajira announced the initiative at a briefing following the cabinet's approval of the plan. He added that these tokens will be launched within the next two months.

Patchara Anuntasilpa, the director of the Public Debt Management Office, stated that the so-called "G-tokens" will be used to raise funds from the public according to the current budget borrowing plan. He added that these are not debt instruments.

"One of the major selling points of the token is that it allows more retail investors to be part of the digital economy," he said, adding that with just $3, "they can invest in government bonds."

Until recently, retail investors in Thailand had been restricted or excluded from large investment products that were primarily targeted at institutional and wealthy investors.

Finance Minister Pichai stated that the initial coin offering aims to "test the market," and investors will receive returns higher than bank deposits, but did not specify the yield.

The interest rates offered by Thai commercial banks to depositors are very low, with the current rate for a 12-month fixed deposit being only 1.25%, far below the rate set by its central bank. Despite the worsening economic difficulties, the central bank has maintained a relatively high interest rate until recently.

Reports indicate that the asset is not a cryptocurrency. It will be traded on licensed digital asset exchanges, but non-Thai citizens residing in Thailand will not have access to these exchanges.

Government bonds are debt securities issued by the state to finance public expenditures. When investors purchase them, they are essentially lending money to the government for a specific period in exchange for regular interest payments and the return of the principal at maturity.

In February of this year, Thailand's securities regulator revealed plans to launch a tokenized securities trading system for institutional investors.

According to data from the real-world asset tokenization analysis platform RWA.xyz, the value of tokenized bonds globally has recently surged, currently standing at $225 million.

Since the beginning of this year, on-chain value has already doubled and may go even higher, as the platform only tracks a limited number of issuers, primarily focused in Europe.

However, according to the data from the analysis platform, the value of tokenized U.S. Treasury bonds has grown to $6.9 billion, an increase of 73% this year.

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