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The Nigerian Securities and Exchange Commission has granted approval for NASD Plc to introduce its Digital Securities Platform (N-DSP) under the Regulatory Incubation (RI) Programme, powered by Blockstation.
As reported by NASD in a press release, this development comes on the heels of the Central Bank of Nigeria (CBN) lifting the ban on digital assets trading. This move is seen as a significant step toward fostering innovation, transparency, trust, and inclusivity within the Nigerian capital markets.
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In partnership with Blockstation Incorporation, NASD worked closely with the Nigerian Securities and Exchange Commission to establish a regulatory framework for cryptocurrencies and digital assets. The subsequent development of regulations and approval for the launch of N-DSP are key outcomes of this collaborative effort.
Eguarekhide Longe, the Managing Director of NASD Plc, highlighted the platform’s goal to empower millions of young investors by providing them access to secure and compliant digital assets. Longe emphasized that Nigeria, currently ranking second globally for blockchain wallets, is well-positioned to support high-quality assets thriving on the blockchain.
The collaboration aims to offer issuers a gateway to raise capital through digital assets, signifying a groundbreaking initiative. Longe noted that this effort could impact traditional debt and equity markets, as well as traditionally illiquid assets.
Longe also pointed out the potential for digital sovereign bonds to address infrastructure funding and foreign exchange challenges in Nigeria. With a promising window for diaspora investors, the $20 billion annual remittances could contribute significantly to the country’s capital.
Additionally, Longe suggested that tokenizing entertainment assets, such as publishing rights, could empower and monetize the world’s largest film content creators. This strategy could benefit undercapitalized sectors like Nollywood and address challenges such as the 28 million housing deficit through tokenized real estate and mortgage-backed securities.
Jai Waterman, CEO of Blockstation, expressed confidence in the transformative impact of integrating cutting-edge technology into Nigeria’s economic landscape. Blockstation, as a technology partner, has provided a robust enterprise blockchain-driven platform that popularizes regulated tokenized IPOs, known as Security Token Offerings (STOs).
The N-DSP aims to revolutionize the issuance, trading, and settlement of digital securities, democratizing access to capital markets while leveraging blockchain technology to enhance accessibility and minimize costs. The Nigerian Securities and Exchange Commission and participating institutions will regulate the operations of the N-DSP during the RI Program, with a focus on market sensitization and public education before its official launch.
The consortium overseeing the project includes NASD Plc, Blockstation, Sophus Consulting, and TK Tech Africa. The implementation will involve a limited number of qualified issuers, emphasizing a strategic and controlled approach within this sandbox environment.
