Blockchain Trading Debuts in Nigeria with NASD Regulated Tokenised Securities

Nigeria’s capital market has taken its first regulated step into blockchain-based trading with the launch of the NASD Digital Securities Platform (NDSP) by the NASD OTC Securities Exchange.

The platform, which is now live, makes NASD the country’s first exchange to offer a regulated market for the issuance and trading of tokenised securities.

The Exchange in a statement said, its inaugural public digital securities offering is scheduled for early September.

According to NASD, the NDSP will allow companies to issue tokenised securities through its regulated market infrastructure, while giving investors access to a new class of digital investment products.

“The platform is powered by blockchain infrastructure developed by Blockstation Inc. and covers the full lifecycle of digital securities, issuance, trading, clearing and settlement, within what NASD described as an institutional-grade environment.”

The acting managing director and chief executive officer of NASD OTC Securities Exchange, Chinwendu Ekeh stated that “the NDSP introduces greater transparency, more efficient issuance and trading processes, and modern market infrastructure designed to support the next generation of regulated capital markets.”

He noted that “we look forward to welcoming issuers, brokers and investors as this market continues to grow.”

NASD said the launch is aimed at widening access to capital and modernising Nigeria’s capital markets by using technology to deepen liquidity and broaden investor participation.

The chief executive officer of Blockstation Inc., Jai Waterman said Nigeria’s young and entrepreneurial population presents an opportunity to expand access to regulated markets.

“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,” Waterman said.

Damola Akindolire of TK Tech Africa also noted the collaborative nature of the project, saying that “opening a new regulated market requires close collaboration between technology providers, market operators, regulators and industry participants. Today’s announcement establishes a strong foundation for future digital securities issuances in Nigeria.”

NASD said additional issuances and market announcements will follow the September debut.

The Exchange plans to engage issuers, brokers, issuing houses, institutional and retail investors, SMEs and other stakeholders as it expands the digital securities ecosystem.

The launch adds to growing momentum in Nigeria’s capital market to embrace tokenisation as exchanges and regulators seek new ways to unlock financing for businesses under an established regulatory framework.

NASD OTC Securities Exchange is Nigeria’s over-the-counter securities market. It provides a trading and settlement platform for unlisted public companies and other securities not traded on the main exchange.