Fractionalizing the Future: Bualuang Securities’ Blockchain Breakthrough
The Opportunity
Bualuang Securities, established in 2001 as broker number one on the Stock Exchange of Thailand, is one of the country’s leading securities companies and a subsidiary of Bangkok Bank Public Company Limited, one of Southeast Asia’s largest banks.
Operating 28 offices nationwide and offering a full range of securities and investment services, Bualuang Securities has long been a cornerstone of Thailand’s capital markets. Despite their strong traditional financial infrastructure, Bualuang recognized emerging challenges:
- Government bonds and high-value assets remained inaccessible to everyday investors due to large minimum investment thresholds (typically USD $100,000 or more).
- Loyalty point systems (like iPoint) were siloed and lacked the scalability and flexibility demanded by modern consumers.
- Legacy back-end systems struggled to accommodate real-time asset fractionalization and high-volume user engagement.
New technologies like blockchain offered solutions, but they needed to meet the highest levels of compliance, security, and operational integration in a heavily regulated environment.
Bualuang Securities sought a future-ready system that could unlock new asset classes, democratize access for everyday investors, and bring next-generation technology to one of the region’s most trusted financial institutions.
The Solution
In 2018, Bualuang Securities partnered with Pellar to launch a groundbreaking platform leveraging blockchain technology to tokenize both government bonds and loyalty points.
Key components included:
- Fractional Bond Ownership: By tokenizing high-value government bonds on a private blockchain, the platform allowed investors to own fractions of bonds, making previously unreachable asset classes accessible to a much broader population.
- Tokenized Loyalty Points (iPoint): Bualuang integrated loyalty point management into the blockchain system, enabling seamless daily batch processing for over 100,000 users and laying the groundwork for future interoperability and rewards innovation.
- On-Premises Deployment: Due to strict compliance requirements, Pellar deployed the blockchain infrastructure directly on Bualuang’s internal systems, running Linux environments remotely through secured Windows workstations.
- High-Throughput, High-Security Infrastructure: Using Prime 1.0, Pellar’s proprietary private blockchain (pBFT consensus-based), the system was rigorously stress-tested for 10,000+ transactions per second (TPS) and passed multiple security audits and compliance reviews.
- Heavy Collaboration and Customization: Pellar’s engineering team worked closely with Bualuang's compliance and IT teams, even handling late-night troubleshooting sessions across time zones to ensure smooth integration and operations.
The project culminated in the successful installation and handover of a fully operational blockchain system, marking one of the first real-world deployments of asset tokenization infrastructure within a major Southeast Asian bank.
As Roy Hui, co-founder of Pellar, explained during a meeting with Bualuang Securities' leadership:
"All those assets you see outside — buildings, land, infrastructure — are illiquid today. But tokenization will eventually make every illiquid asset liquid, fractionalized, and tradable. It's just a matter of time."
Results
- Technology Delivery: Successfully deployed a private blockchain system fully integrated into Bualuang’s operational stack.
- Asset Innovation: Enabled fractional ownership of traditionally inaccessible government bonds.
- Scale: Integrated batch processing for 100K+ loyalty point users daily.
- Security: Passed rigorous security audits and compliance testing.
- Market Leadership: Positioned Bualuang Securities as an early mover in financial asset tokenization within Thailand and Southeast Asia.
Key Technologies
- Prime 1.0 Private Blockchain (pBFT consensus)
- On-Premises Blockchain Deployment Architecture
- Tokenization Smart Contracts (Bonds and Loyalty Points)
- High-Throughput Transaction Processing (10K+ TPS stress-tested)
- Secure Remote Linux System Management