Thailand Stock Exchange Launches Blockchain-Powered Funding Market
National Stock Exchange of Thailand takes initiative to broaden capital funds for domestic startups
The Thailand Stock Exchange took the initiative to broaden the reach of capital funds for domestic startups using blockchain technology, as announced on 4th May 2018. This blockchain-powered initiative named LiVE by the Stock Exchange of Thailand (SET) supports peer-to-peer trading on the blockchain. This will be a boost for the startups to access new capital from investors. These include investments incoming from institutional investor worlds and venture capital (VC) firms.
According to the information provided by officials at SET, eight firms are already running on the blockchain platform. There are nearly 50 more firms on schedule to join the blockchain initiative.
In the SET news release, it mentions four investor types in the platform; i) institutional investor, ii) venture capital (VC), iii) corporate venture capital, and iv) specific investor with annual income no less than 4 million THB or with combined assets worth no less than 50 million THB, and at least one year of investment experience.
Thailand Stock Exchange driving economic growth in the country
Kesara Manchusree, President of Thailand Stock Exchange made the following statement;
‘LiVE’ platform will be a key mechanism to help drive forward Thailand’s growth especially enabling startups and SMEs to have more financial accesses through crowdfunding. Businesses can utilize LiVE to promote to a wider target group while using [the] partnership to expand [our] customer base.
This launch by SET comes after a development cycle of almost one year. Earlier in March 2017, the Thailand Stock Exchange initiated plans to build a crowdfunding platform to set up startups. More than 600 firms in the industry have shown eagerness to join the marketplace powered by SET using blockchain technology.
The benefits for those who invest on this project are stated on the LiVE website in the following manner; i) Explore businesses in our one-stop center, ii) Coverage of all investment processes including funding raising and trading, iii) Trade and settle with a trusted and transparent system.
In other countries, stock exchanges such as Hong Kong Stock Exchange are also analyzing the use of blockchain in order to implement securities for small scale businesses.