Thailand Finance Ministry Plans to Launch $150M Government Tokens to Raise Public Funds

Thailand’s Finance Ministry is poised to launch an innovative financial instrument, the G-Token, within the next two months. This digital investment token, with a planned issuance of 5 billion baht (approximately $150 million), represents a novel approach to public fundraising.

According to Bloomberg, the G-Token stands apart from traditional bond offerings by avoiding classification as a debt instrument. Thailand will structure its budget borrowing plan to enable direct capital acquisition from the public.

This initiative signals a strategic evolution in governmental fundraising methodologies and aims to broaden access to state-backed investment opportunities for retail investors.

Thailand Expands Digital Investment Reach

According to Finance Minister Pichai Chunhavajirai, the G-Token accommodates investors with modest capital reserves. He anticipates that these tokens will provide returns exceeding prevailing bank deposit rates. The tokens are being developed to comply fully with the regulatory framework established by the Bank of Thailand.

Authorities expect the G-Token to enhance secondary bond market activity, thus promoting greater liquidity and accessibility. They conceive the present issuance as an initial trial; subsequent issuances will depend on demonstrated market demand.

The Thai cabinet has approved the G-Token initiative, which forms part of a more extensive exploration of digital asset opportunities under the auspices of the ruling Pheu Thai Party.

Earlier in the year, Thaksin Shinawatra, the father of the current Prime Minister, Paetongtarn Shinawatra, championed introducing government bond-backed stablecoins as a mechanism to support retail and institutional investors.

The Bank of Thailand recently lowered its benchmark interest rate to 1.75%, which has spurred a search for higher-yield investment options among savers. Traditional bank deposits offer returns in the range of 1.25% to 1.5%.

Thai SEC Approves First Bitcoin ETF

According to a CoinTab report in January, the Securities and Exchange Commission (SEC) in Thailand intends to let Thai investors buy Bitcoin ETFs directly on local stock markets. If approved, people in Thailand can own investments that represent Bitcoin (BTC).

Currently, the Thai government permits investors to invest in Bitcoin indirectly, such as One Asset Management’s fund, which invests in international Bitcoin ETFs. Approving local Bitcoin ETFs will provide a simpler and controlled way to invest in crypto.

Additionally, in January 2024, the United States approved many Bitcoin ETFs, allowing investors to deal with Bitcoin in a controlled setting. Since then, these products have reached a market value of over $108 billion.