Following an SEC-approved rulebook based on demonstrations of Blockstation solutions, the NASD OTC Securities Exchange has announced that it will soon launch a new Digital Securities Platform (N-DSP). The platform would rest on its new Master Agreement with Blockstation and regional partner TK Tech Africa. The partnership emerged from the recent publication of the Securities & Exchange Commission’s (SEC’s) Digital Asset Rulebook. As an exchange specializing in capital formation for companies in West Africa, NASD expects the Blockstation platform to create a fast track for issuers to tokenize their assets, raise funds, and connect with a global investor pool.

Further, the platform serves all ecosystem stakeholders, including issuers, brokers, custodian banks, depositories, regulators, and investors, providing secure, end-to-end functionality for the entire capital markets lifecycle. “This agreement is a key part of our strategy to be the most innovative exchange for capital formation in West Africa,” says Bola Ajomale, NASD Managing Director and CEO. 

“By building the N-DSP on the Blockstation platform, we stand to create a secure, efficient and dynamic solution for issuers to tokenize, as well as connect with both brokers and investors more easily than ever before. More broadly, this cutting-edge technology furthers NASD’s mission to enable economic development in Africa through consistent innovation, fulfilling our commitment to our stakeholders and the Nigerian economy at large.” 

The Master Agreement is the latest milestone in this initiative, following a successful pilot of the Blockstation platform in 2021, which involved NASD, Stanbic IBTC Bank, Stanbic IBTC Custodian, Capital Assets Limited, Afrinvest Limited, Greenwich Merchant Bank, Utica Capital, Anchoria Investments & Securities Ltd, and Coronation Merchant Bank. The pilot proved the system’s suitability to support end-to-end workflow for all stakeholders in full compliance with market integrity, KYC/AML, and other regulatory requirements. 

Speaking on the collaboration between Blockstation, TK Tech Africa and NASD, TK Tech Managing Director Damola Akindolire expressed delight regarding the achievement of this critical milestone and highlighted how the new SEC guidelines would enhance investor confidence and market transformation. 

“We are honoured to be directly involved with this process in Nigeria through NASD and our strategic regional partner TK Tech Africa to advocate for the new digital asset rules,” says Matt Singh, Head of Business Strategy for Blockstation. 

“Considering Nigerians made over US$274bn’ worth of transactions in e-payments in the first four months of 2022, Nigeria is in a perfect position to leverage blockchain-based investments for its citizens.” 

As knowledge of digital securities is critical to the successful take-off of the digital securities market in Nigeria, NASD and its partners will run the second of their enlightenment webinars, Perspectives on Virtual Assets in the Capital Market, on June 15 at 11 am. 

Register here: https://us02web.zoom.us/webinar/register/WN_aG1MsW2wTTuSjEX0GHUgSQ