The Securities and Exchange Commission has granted the National Association of Securities Dealers permission to start implementing its Digital Securities Platform as part of the Regulatory Incubation initiative.
NASD Plc is an Over-the-Counter securities exchange that enables trading of all securities of unquoted firms, especially in Nigeria.
The SEC created the Regulatory Incubation program to meet the needs of new business models and processes that need regulatory authorization to continue conducting full or auxiliary technology-driven capital market activities.
The SEC’s approval, according to NASD, is a result of development work that spanned roughly two years between NASD and its consortium of partners, which includes Blockstation Inc. USA, T.K. Tech Limited, Nigeria, and Sophus Consulting Limited, Nigeria.
In addition to democratizing access to the capital market by lowering the barrier to both issuing and investing in securities, it was claimed that the digital securities platform would offer an end-to-end solution for the issuance, trading, and settlement of digital assets. It would do this by utilizing blockchain technology to increase accessibility and reduce costs.
The Managing Director of 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.
“These assets are securitized by tokens, presenting the capacity to deploy trading solutions to diverse asset classes, and revolutionize the trade settlement process.”
Recall that NASD successfully piloted the NASD-DSP with the participation of a number of institutions and brokers, including Stanbic IBTC Custodian, Stanbic IBTC Bank, Afrinvest Securities Limited, Greenwich Securities Limited, and Anchoria Investment & Securities Limited.
