The Nigerian Securities and Exchange Commission (SEC) has granted approval to NASD Plc to launch its Digital Securities Platform (N-DSP).
The N-DSP is powered by Blockstation, under the Regulatory Incubation (RI) Programme of the commission.
The milestone, according to NASD, signifies a noteworthy stride toward fostering new age innovation, enhanced transparency and deepens trust and inclusion in Nigerian capital markets.
Recall that the NASD Plc in collaboration with Blockstation Inc., engaged with the SEC to shape a regulatory framework for crypto/digital assets. Subsequently, Central Bank of Nigeria, CBN lifted the ban on digital asset trading.
Commenting, Eguarekhide Longe, Managing Director, NASD Plc, said: “Our objective is to empower millions of young investors with access to promising digital assets, ensuring they can make purchases with confidence in a compliant and secure investment environment.
“Nigeria currently ranks second globally for blockchain wallets, and our Exchange is poised to support high-quality assets thriving on the blockchain.”
“NASD is providing issuers with a gateway to raise capital from the public using digital assets, marking a groundbreaking initiative. This endeavor is set to directly influence traditional debt and equity markets, along with traditionally illiquid assets.
The opportunity for digital sovereign bonds can provide the necessary capital for infrastructure while helping resolve Foreign Exchange, FX challenges in the country.
“The diaspora, with $20 billion in annual remittances, can have a promising way to invest their money back home. The tokenization of entertainment assets, such as publishing rights, can further empower and monetise the world’s largest film content creators, Nollywood, currently undercapitalised.
“New markets like tokenized real estate and mortgage-backed securities (MBS), can leverage tokenization to address challenges, such as the 28 million housing deficit, thereby creating a substantial market opportunity,” he added.
“In a nation marked by dynamic economic forces, the confluence of digital assets and traditional financial institutions signals a transformative era for Nigeria’s economic landscape.
“The integration of cutting-edge technology to address the needs of, and captivate the substantially large youthful population, is set to unlock previously untapped markets. We are confident that this platform will play a pivotal role in propelling Nigeria into a new era of economic growth.” Jai Waterman, CEO, Blockstation, said.