Nigeria’s quest to deepen its financial markets has received a major boost with the addition of a formal, regulated, digital securities market for trading in digital tokens and other automated investment products.

The inaugural public digital securities offering on the digital securities market, known as NASD Digital Securities Platform (NDSP), is scheduled for early September.

NDSP was developed by NASD OTC Securities Exchange, an over-the-counter (OTC) securities market, where several unlisted public limited liability companies are listed.

Acting Managing Director, NASD OTC Securities Exchange, Chinwendu Ekeh, yesterday confirmed the launch of NDSP and the scheduled commencement of issuance in early September.

She said the launch of a regulated digital securities market that provides platform for issuance and trading of tokenised securities was part of efforts aimed at modernising Nigeria’s capital markets and widening access to capital.

According to her, the launch underscores growing momentum within Nigeria’s capital market to embrace tokenisation as exchanges and regulators seek innovative ways to deepen market liquidity, broaden investor participation and unlock new sources of financing for businesses.

She explained that the platform would enable companies to issue tokenised securities through NASD’s regulated market infrastructure while giving investors access to a new class of regulated digital investment products.

She outlined that the platform is powered by blockchain infrastructure, developed by Blockstation Inc, enabling the issuance, trading, clearing and settlement of digital securities within an institutional-grade environment.

Chief Executive Officer, Blockstation Inc, Jai Waterman said Nigeria has tremendous opportunity to expand the scope and depth of its capital markets, given its huge resources and youthful population.

He said: “With one of the youngest and most entrepreneurial populations in the world, Nigeria has an extraordinary opportunity to expand access to regulated capital markets.

“Enabling greater participation in capital formation is an important step toward long-term wealth creation and economic growth. We are proud to support NASD in introducing the NDSP and look forward to seeing the market empower the next generation of Nigerian issuers and investors”. (The Nation)

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