Japan, India use blockchain for bonds; Thailand on crypto ETFs

Japan, India, and Thailand are pushing ahead with blockchain-based financial initiatives, from Japan’s plans for instant stock and bond settlement to India’s first tokenized corporate bond, and Thailand’s proposed digital currency ETFs.

• Japan looks at blockchain for instant stock, government bonds
• India to launch its first tokenized bond in September
• Thailand regulates locally listed digital currency ETFs

Japan eyes blockchain for instant stock, government bond settlement

Japan is eyeing the establishment of a payment infrastructure to enable instant settlement of stock and Japanese government bond transactions using blockchain technology, Nikkei reported.

The Financial Services Agency (FSA), the Ministry of Finance, the Bank of Japan (BOJ), and financial institutions are looking to launch a study group and aim to formulate a development plan by 2027 at the earliest, according to reports.

The plan is expected to outline the blockchain’s design, clarify the roles and responsibilities of participating agencies and institutions, and establish a development roadmap, with the instant payment system potentially extending to international remittances.

If approved, the operations may begin within a few years, with the system becoming fully operational in the early 2030s.

In Japan, stock trades are currently settled in cash two days after their execution, while government bond transactions are settled one day later. A real-time settlement system could eliminate this delay by linking trade execution directly with cash settlement.

India to launch its first tokenized bond in September

If Japan is preparing for instant bondsrate bonds by September as it tests how the technology can enable instant settlement bond transactions, Reuters said

The notes will be issued by REC—a government-owned financier—and are intended to position India alongside major markets such as Europe and Hong Kong.

According tos than 5 billion rupees ($57 million) in the offering, and the country’s central bank digital currency (CBDC)—the digital rupee—will be used to buy tokenized bonds. It is expected to be launched at an annual financial technology event in Mumbai next month

“The offering would be made available to only a select group of ‌investors ⁠at the pilot stage,” one of the

To access the bonds, investors may need to have two digital accounts—a wholesale digital currency wallet from a bank and a new electronic securities wallet, the the traditional electronic book provider platform

“Subsequent trades can take ​place only ⁠between participants that hold both compatible CBDC and securities wallets,” one of the

Currently, Indian depositories are working on a unique wallet called “DEMAT 2.0,” which will record bond holdings on a distributed ledger technology chain.

Tokenized bonds are digital securities in which ownership, issuance, trading, and settlement are recorded on a blockchain or distributed ledger, enabling transactions to be completed almost instantly.

Thailand’s SEC advances rules for locally listed digital currency ETFs

Still in Asia, Thailand’s Securities and Exchange Commission (SEC) is asking for public comments on draft digital currency exchange-traded funds (ETFs) and proposes principles to revise qualification requirements for international digital asset custodians (DA custodians) engaging in mutual funds and private funds investing in digital currencies, the SEC News posted.

Previously, the SEC proposed principles for regulating and establishing digital currency ETFs in Thailand to expand investment opportunities for local investors and promote product diversity in the country’s capital market.

Following a public hearing held from April to May 2026, in which most participants expressed support for the proposed framework, the SEC has revised its custody regulations for digital currency ETFs to be more flexible. Under the revised rules, digital currency ETFs will still need to use onshore DA custodians, while the SEC may allow the use of qualified foreign DA custodians when necessary and in light of prevailing circumstances.

The SEC is now inviting public feedback on the draft regulations governing the creation and regulatory framework for digital currencies in Thailand. Additionally, they are seeking comments on proposed principles for revising qualification requirements for foreign DA custodians that serve mutual and private funds investing in digital currencies.

The proposals cover three main areas: the regulatory framework for the establishment of digital currency ETFs in Thailand; the delegation of digital asset investment management by AMCs; and the eligibility of DA custodians and other qualified digital asset business operators to act as mutual fund supervisors for digital currency ETFs.

“In the initial phase, the custodian of digital assets must primarily be an onshore DA custodian. In the future, the SEC may permit the use of a foreign DA custodian that meets the prescribed qualifications if such use is considered necessary and appropriate in light of prevailing circumstances,” it said. “The foreign service provider must be subject to supervision by a regulatory authority with legal powers and operate under regulatory and investor asset protection standards considered adequate by the SEC.”

In line with this, the SEC has published two consultation papers:

1. Draft Notification concerning the establishment and regulation of digital currency ETFs in Thailand.
2. Proposed principles for revising foreign DA custodian qualification requirements.

Source: coingeek.com