Thailand's financial industry is entering what could become its most disruptive transformation in decades as tokenisation and blockchain-based finance begin reshaping how assets are issued, traded and owned globally.
The emerging concept of "Traditional Finance 2.0", in which stocks, bonds, gold, funds and even real estate are converted into blockchain-based tokens, is no longer viewed as a distant experiment. Instead, industry executives and digital asset pioneers believe it could fundamentally alter Thailand's capital markets within 1-5 years.
Udomsak Rakwongwan, co-founder of decentralised derivatives platform FWX and a lecturer at Kasetsart University's Department of Mathematics, said the financial system is moving towards a unified blockchain infrastructure where nearly all assets can interact seamlessly.
"In the future, every asset -- from equities and mutual funds to gold and real estate -- will exist as tokens on the same infrastructure," Mr Udomsak said. "That changes everything about how capital moves."
Traditional Finance 2.0
Traditional Finance 2.0 refers to the migration of conventional financial assets onto blockchain networks through tokenisation. Instead of relying on multiple intermediaries such as brokers, custodians, clearing houses and banks, investors could transact directly through decentralised infrastructure.
The next phase of financial competition may no longer be a question of which country has the biggest bourse, but which has the most attractive digital financial infrastructure.
Under this model, investors may eventually buy tokenised shares in global companies such as BlackRock, technology stocks or government bonds directly through blockchain-connected applications with significantly lower transaction costs, he said.
Supporters argue the system could eliminate layers of fees, reduce settlement times, improve global accessibility and create programmable financial products that traditional systems cannot easily support.
For example, a tokenised gold holding could immediately be used as collateral to borrow stablecoins and reinvest in equities -- all within the same system.
Threat to Brokers
The rise of tokenisation also raises uncomfortable questions for Thailand's brokerage industry.
According to Mr Udomsak, both traditional and digital brokers face existential risks if investors can directly access tokenised global assets without relying on intermediaries.
"When investors can buy products directly from issuers, the role of brokers becomes much smaller. The business model based on transaction fees could disappear," he said.
The disruption may not eliminate intermediaries entirely, but it could radically change their role. Instead of acting as trade facilitators, future financial institutions may need to become infrastructure providers, digital asset custodians, liquidity managers or token issuance platforms.
This shift is already visible globally as Wall Street giants accelerate their tokenisation strategies.
EMERGING MARKET RISKS
One of the biggest concerns for Thailand is the possibility of accelerating capital outflows.
Industry observers argue the US is increasingly using tokenisation as a mechanism to attract global liquidity into American financial assets.
If tokenised shares in companies such as Google, Tesla or S&P 500-linked funds become globally accessible with minimal friction, investors in emerging markets may redirect capital away from local equities towards larger international opportunities.
That trend could weaken Thailand's stock market, which has already struggled with slowing growth, declining liquidity and limited participation from younger investors.
"Thai stocks risk becoming less attractive or less sexy compared with global tokenised assets," Mr Udomsak warned. "If Thailand does not adapt, the market could shrink significantly over the next five years."
While disruption fears are growing, Thailand's largest conglomerates are already moving aggressively into digital finance infrastructure.
Major business groups including SCB X, Kasikornbank, Gulf Development, PTG Energy through Maxbit, and Charoen Pokphand Group have expanded investments into exchanges, blockchain systems and digital asset businesses.
Rather than resisting tokenisation, these firms are positioning themselves as gateways to the new financial system.
Their strategy is straightforward: if future trading shifts onto blockchain networks, ownership of exchanges and digital infrastructure could become more valuable than traditional brokerage models.
Thailand's policy direction has become increasingly supportive. Market participants point to the government's tax incentives for digital assets and broader openness towards crypto-related innovation as signals that regulators want Thailand to remain competitive in the digital economy.
FRESH OPPORTUNITIES
The debate surrounding tokenisation comes as the Stock Exchange of Thailand (SET) attempts to revitalise Thailand's equity market and attract new investment themes.
SET president Asadej Kongsiri recently announced plans to revise listing rules for both the SET and the Market for Alternative Investment to attract "new economy" companies, startups and foreign firms.
The proposed reforms include lower market capitalisation requirements, more flexible revenue criteria, special listing tracks for companies supported by the Board of Investment and the Eastern Economic Corridor, and relaxed rules for foreign issuers.
The exchange is also reviewing silent period regulations and secondary listing rules to align Thailand more closely with international standards.
"All these measures are intended to bring more attractive securities to Thailand's stock market," said Mr Asadej.
According to Kongkiat Opaswongkarn, chief executive of Asia Plus Group Holdings, the reforms are necessary because the competition is no longer regional; it is becoming global and digital.
Increasing the number of high-quality and attractive products on the SET will attract more investment, he said.
Moving beyond its primary brokerage services, Asia Plus Group diversified into financial consulting, bond trading, product innovation and investment management.
By shifting its revenue model towards multiple income streams, the group is well-positioned to adapt to the rapidly changing business landscape, said Mr Kongkiat.
"If investors can access tokenised US assets instantly through blockchain platforms, Thai capital markets must offer differentiated growth opportunities, stronger innovation sectors and more globally relevant companies to remain competitive," he said.
ASSETS FOR TOKENISATION
Financial analysts argue Thailand cannot afford to become a source of outbound capital. The country may need its own national tokenisation strategy.
Among the assets viewed as suitable for tokenisation are Thai government bonds, blue-chip equities, infrastructure funds, real estate investment trusts, renewable energy projects, tourism-linked assets, and high-quality mutual funds.
Tokenised government bonds could potentially attract global retail investors while providing Thailand with a new funding mechanism. Meanwhile, tokenised real estate or infrastructure projects could improve liquidity and broaden international participation.
The broader goal would be to transform Thai assets into globally accessible investment products rather than allowing domestic savings to flow exclusively into foreign markets.
Mr Udomsak said the growing consensus among digital finance advocates is that tokenisation is no longer simply a crypto issue, but rather a strategic economic topic.
"If blockchain-based finance becomes the dominant global infrastructure for capital markets, countries that fail to adapt risk losing competitiveness, liquidity and financial relevance," he said, adding this is why some industry leaders believe tokenisation should become part of Thailand's national agenda.
Thailand should develop clearer digital asset regulations, modernise financial infrastructure, encourage institutional innovation, and create tokenised Thai investment products capable of attracting international capital, Mr Udomsak noted.
The challenge will be balancing innovation with investor protection and financial stability, he said.
According to market observers, the transition to Traditional Finance 2.0 may not happen overnight, but momentum is clearly building.
The future for brokers may depend on how quickly they evolve beyond commission-based business models. For Thailand's capital market, survival could depend on whether it can reinvent itself before global liquidity shifts elsewhere permanently.
The next phase of financial competition may no longer be a question of which country has the biggest stock exchange, but which country possesses the most attractive digital financial infrastructure.
