In a significant development, the Nigerian Securities and Exchange Commission (SEC) has given the green light to NASD Plc for the launch of its Digital Securities Platform (N-DSP). This groundbreaking platform, powered by Blockstation, marks a noteworthy stride toward fostering innovation, enhancing transparency, and deepening trust within Nigeria’s capital markets.
The regulatory approval comes as a result of a collaborative effort between NASD Plc and Blockstation Inc., working within the Regulatory Incubation (RI) Programme of the SEC. This move follows the lifting of the ban on digital asset trading by the Central Bank of Nigeria (CBN) after NASD and Blockstation engaged with the SEC to shape a regulatory framework for crypto/digital assets.
Eguarekhide Longe, Managing Director of NASD Plc, expressed the objective of empowering millions of young investors with access to promising digital assets. The N-DSP aims to provide a secure and compliant environment, allowing investors to make purchases with confidence.
“Nigeria currently ranks second globally for blockchain wallets, and our Exchange is poised to support high-quality assets thriving on the blockchain,” Longe stated. NASD is also providing issuers with a gateway through the N-DSP to raise capital from the public using digital assets. This groundbreaking initiative is expected to directly influence traditional debt and equity markets, along with traditionally illiquid assets.
Longe highlighted the opportunities presented by digital sovereign bonds, emphasizing their potential to provide the necessary capital for infrastructure and address Foreign Exchange challenges in the country. The platform also offers the diaspora, with $20 billion in annual remittances, a promising way to invest their money back home.
Jai Waterman, CEO of Blockstation, sees the integration of cutting-edge technology as a transformative era for Nigeria’s economic landscape. He believes that the confluence of digital assets and traditional financial institutions will unlock previously untapped markets, propelling Nigeria into a new era of economic growth.
The NASD’s Digital Securities Platform is poised to play a pivotal role in revolutionizing Nigeria’s capital markets, offering new opportunities for investment and fostering economic growth.
