Investment tokens are expected to gain widespread popularity in Thailand next year as digital assets become a mainstream funding option for investors, says digital asset platform operator XSpring Digital (XD).
XD, a Bangkok-based initial coin offering (ICO) portal service provider, expects the digital asset market to garner additional attention next year, with more corporations looking to raise funds through digital tokens, said acting chief executive Tanasak Krishnasreni.
The company, which offers one-stop services for digital assets, said more than 10 firms have sought its advice on asset tokenisation this year.
"These companies are preparing to submit their filings to the Securities and Exchange Commission [SEC] soon. We expect significant progress in the digital asset business in 2023," said Mr Tanasak.
The establishment of Thai Digital Securities Trading Center Co Ltd by the Stock Exchange of Thailand (SET) for trading of investment and utility tokens in March this year is a major factor that can boost investment in digital tokens, he said.
More companies, particularly those founded by young entrepreneurs, are increasingly interested in issuing their own digital tokens amid the rise of blockchain technology that allows investors to put their funds into real assets, such as business projects, real estate and intellectual property, said Mr Tanasak.
Token issuers can provide offers for their investors, such as free hotel stays when investing in hotel tokens, he said.
The total number of ICO portal service providers licensed by the SEC has more than doubled since 2020, with seven at present.
Mr Tanasak said investment tokens in particular would gain interest among investors in 2023 because they are backed by assets, which are not restricted to only real estate. Investors can make profits from trading investment tokens, in addition to gaining from their revenue share.
Utility tokens are preferable for entrepreneurs to support their business ecosystems, he said.
"I believe digital tokens will play a greater role next year because they are assets that connect the traditional world of investment with the new age," said Mr Tanasak.
Founded in 2018, XD is a subsidiary of XSpring Capital Plc. The company, which also operates as a digital asset broker and dealer, is majority-owned by the SET-listed developer Sansiri.
