NASD secures SEC approval to launch digital securities platform

NASD Plc has secured approval from the Securities and Exchange Commission (SEC) to commence implementation of its Digital Securities Platform (DSP) under the Regulatory Incubation (RI) programme.

NASD Plc is an Over-the-Counter (OTC) securities exchange that facilitates trading of all securities of unquoted companies, primarily in Nigeria.

The Regulatory Incubation (RI) programme is designed by the SEC to address the needs of new business models and processes that require regulatory authorisation to continue carrying out full or ancillary technology-driven capital market activities.

NASD in a statement described the SEC approval as a positive development for the Nigerian capital market ecosystem that culminates development work spanning approximately two years between NASD and its consortium of partners – Blockstation Inc. USA; T.K. Tech Limited, Nigeria, and Sophus Consulting Limited, Nigeria.

It stated that the digital securities platform would provide an end to end solution for the issuance, trading and settlement of digital assets and also democratize access to the capital market by lowering the barrier to both issuing and investing in securities leveraging blockchain technology to increase accessibility and lower cost.

Commenting, Mr. Eguarekhide Longe, Managing Director, NASD Plc, said: “We are truly excited at NASD to be working with the right partners such as Tk Tech Africa, Blockstation Inc and Sophus Consulting to introduce to the Nigerian capital market this opportunity to adopt innovation through digital securities trading of ‘real’ assets that are securitised by tokens, presenting the capacity to deploy trading solutions to diverse asset classes, revolutionise the trade settlement process (currently T+3; potential T+1), expand trading horizons, automate the process for new issuance and present convenience of accessibility across digital devices”.

Recall that NASD ran a successful pilot of the NASD – DSP with several participating institutions which include Stanbic IBTC Custodian, Stanbic IBTC Bank and several brokers which include Afrinvest Securities Limited, Greenwich Securities Limited and Anchoria Investment & Securities Limited.

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