The automotive motor company in Thailand, Toyota Leasing Thailand Co Ltd has become the first company to issues debentures using blockchain DLT technology. In simple words, Distributed ledger technology (DLT) is a digital system that can record assets transaction and their details in multiple places and that too at the same time. Distributed ledgers have no administrative functionality central data store as compared to the traditional databases. DLT itself is the centre for storing details and documents of debt holders.
How Can DLT Benefit The Overall Debenture Industry?
With the help of DLT, the company can get real-time notifications of debt owners which will eventually enhance their transaction efficiency. As said by Chuenkamol Boobphakam, the managing officer of Toyota Leasing, the same will also be beneficial in the process of issuance in the debenture market. The best part about DLT is that the debenture issuers can observe the real-time transactions of debt holders.
Even though the Thai Bond Market Association (TBMA) has collected trading data and bond features details, it still is not able to get bondholder data. Therefore, DLT is going to be potentially beneficial for the debenture securities industry by helping it in collecting bondholders database.
TBMA Studied Blockchain Technology For Registrar Services
A year before, TBMA was researching blockchain technology for enhancing its bond registrar services platform as the first phase of development. The second and the third phase involved bond deposits and Bond Coin for the settlement system, respectively.
The debenture value of Toyota Leasing Thailand is around 500 million baht which is only offered to high-net and institutional investors. The debenture has a maturity period of 11 months and 29 days. The debenture underwriter and holder representative for this project are Bankok Bank and Bank of Ayudhya.
After issuing the debentures using blockchain integrated ledger technology, Toyota Leasing Thailand Co Ltd is going to be the first company that can collect bondholders information that will eventually increase the transaction efficiency. DLT has made it possible to record asset transactions and details at multiple places.