NASD OTC Securities has announced that it will soon launch a new Digital Securities Platform (N-DSP) in collaboration with 2 blockchain product companies.
In a press release, NASD said this launch is made possible following the recent publication of the Securities & Exchange Commission’s (SEC) Digital Asset Rulebook. This follows the recent announcement by the Nigeria Stock Exchange which said it plans to adopt blockchain for tokenized securities in 2023.
For NASD, its exchange will specialize in capital formation for companies in West Africa via the BlockStation platform to create a fast-track for issuers who seek to:
- Tokenize their assets
- Raise funds
- Connect with a global investor pool
Further, the platform will serve all ecosystem stakeholders with the aim of providing secure, end-to-end functionality for the entire capital markets lifecycle.
Some of the target stakeholders include:
- Custodian banks
According to Bola Ajomale, CEO / Managing Director, NASD:
“This agreement is a key part of our strategy to be the most innovative exchange for capital formation in
By building the N-DSP on the Blockstation platform, we stand to create a secure, efficient, and dynamic solution for issuers to tokenize, as well as connect with both brokers and investors more easily than ever before.”
– CEO, NASD
Speaking on the immense opportunities in blockchai-based tokenized investments, Matt Singh, Head of Business Strategy, BlockStation:
“Considering Nigerians made over 274 billion dollars’ worth of transactions in e-payments in the first four months of 2022, Nigeria is in a perfect position to leverage blockchain-based investments for its citizens.“
– Head of Business Strategy, BlockStation
The BlockStation Digital asset Trading Platform provides end-to-end, plug-and-play support for listing, trading, clearing, and settlement of digital assets such as Tokenized IPOs and digital currencies for all market participants.
The regional partner, TK TECH AFRICA LIMITED, is a technology company that is focused on using blockchain technology to digitize assets, create alternative asset classes, and transform financial market transaction in Africa.
A pilot for the platform was conducted successfully in 2021 which had the participation of several institutions in Nigeria, including:
- Stanbic IBTC Bank
- Stanbic IBTC Custodian
- Capital Assets Limited
- Afrinvest Limited
The pilot proved the system’s suitability to support end-to-end workflow for all stakeholders in full compliance with market integrity, KYC/AML, and other regulatory requirements.