Catenaa, Thursday, May 29, 2025-Thailand’s securities watchdog has declared that G-Token, the country’s first tokenized government bond, cannot be used as a medium of payment, underscoring its position as a state-backed investment product rather than a tradable cryptocurrency.
The Securities and Exchange Commission laid out guidelines this week that position G-Token as a blockchain-based digital investment tool under the country’s Digital Asset Act.
SEC Secretary-General Pornanong Budsaratragoon said the move aims to foster innovation while curbing speculative behavior.
“We want to ensure that G-Token serves as a useful, technology-driven investment innovation — not merely a speculative tool,” Budsaratragoon said in a statement.
Thailand’s Ministry of Finance had earlier unveiled plans to issue $150 million worth of G-Tokens to allow retail investors access to government bond offerings via an initial coin offering (ICO) portal. The Finance Ministry will act as registrar, and the SEC will oversee regulation and market conduct.
G-Token is not a debt instrument and will be governed separately from public debt laws, according to Jomkwan Kongsakul, SEC deputy secretary-general. The digital tokens will be accessible via licensed crypto exchanges or security firms, depending on the investor’s preferred route.
The official launch is expected in July, with the terms — including interest rate, maturity and collateral — set to be revealed beforehand. The tokens will also be tradable on secondary markets, with the SEC enforcing trading rules and ensuring investor protection.
Public consultations on the framework were held over 15 days to refine the initiative ahead of rollout.
