Thailand's Finance Ministry to Issue 5 Billion Baht ($150M) G-Token

Unlike traditional bonds, the G-Token is not classified as a debt instrument. Instead, it will be offered under Thailand's budget borrowing plan

Thailand’s Finance Ministry is planning to issue 5 billion baht ($150 million) in digital investment tokens - dubbed the G-Token - within two months, a ministry official said on Wednesday.

The tokens will be sold in units of 1,000 baht and small investors can expect an installment as small as 500 baht, if not smaller, said Pichai Chunhavajirai, the minister of finance. They are also expected to pay out a rate higher than the current bank deposit rates.

"We will be able to sell the G-Token within two months from now. It will be part of the government's budget borrowing plan for this fiscal year," Pichai told reporters.

Unlike traditional bonds, the G-Token is not classified as a debt instrument. It will be offered under Thailand’s budget borrowing plan, which aims to raise funds directly from the public.

The move marks a shift in the government’s fundraising strategy and expands retail access to state-backed investments. It also expands on broader digital asset initiatives being explored under the ruling Pheu Thai Party.

Earlier this year, Thaksin Shinawatra - the father of Prime Minister Paetongtarn Shinawatra and a former premier himself - pitched the idea of the central bank creating a stablecoin backed by government bonds to support both retail and institutional investors.

The Bank of Thailand recently reduced its key interest rate to 1.75%, prompting the search for higher-yielding alternatives among savers. Traditional bank deposits currently offer returns of about 1.25% to 1.5%.

The tokens will comply with all Bank of Thailand regulations and could help increase activity in the secondary bond market, rendering it more liquid and accessible.

This initial phase will serve as a test, and further issuances will depend on demand, said Pichai.

The cabinet has approved the G-Token plan, which is part of broader digital asset initiatives being explored by the government.

Earlier this year, the Bank of Thailand signed a memorandum of understanding with the ministry of finance to cooperate on developing a central bank digital currency (CBDC).

The Southeast Asian nation is among several in Asia that are looking into blockchain-based finance. As global trends, including the U.S.’s evolving crypto stance, heat up, they are beginning to influence regional policy.