Mongolia’s over-the-counter securities market has entered a new phase after officially adopting a blockchain-based trading system that enables continuous operations. Powered by technology developed by AND Global Group, the transition introduces a 24-hour, five-day trading model that represents a landmark development for the country’s capital markets and a notable advancement on a global scale. With this move, Mongolia becomes one of the first markets to fully implement blockchain infrastructure for round-the-clock OTC securities trading.
The new system allows trades to be executed continuously during the business week, while automated settlement processes finalize transactions in less than one minute. This represents a significant improvement over traditional post-trade settlement cycles, which often take several hours or days to complete. By shortening settlement times and reducing manual intervention, the blockchain framework enhances efficiency, transparency, and operational resilience across the market.
Extensive Testing and Regulatory Oversight
Before going live, the blockchain trading platform underwent extensive testing within the Financial Regulatory Commission’s sandbox environment. The testing phase lasted 18 months and focused on validating system stability, security, and compliance with regulatory standards. This controlled approach allowed regulators and market participants to assess real-world performance while minimizing systemic risk.
The Financial Regulatory Commission had earlier outlined its intention to migrate the OTC securities market to blockchain infrastructure during the Mongolia’s Capital Market Connectivity 2025 international conference held in Ulaanbaatar on September 12, 2025. The official launch of continuous 24/5 trading marks the next stage of that strategic roadmap, demonstrating the regulator’s commitment to modernizing market infrastructure through emerging technologies.
Rising Trading Activity and Liquidity Gains
Since the blockchain-based system was introduced, Mongolia’s OTC market has already recorded a notable increase in activity. In the three months following the transition, secondary market trading volumes rose by approximately 40 percent. This growth has been linked to the efficiency gains delivered by instant and automated payment settlements, which have reduced friction for investors and intermediaries alike.
Market participants expect liquidity to improve further under the newly implemented continuous trading schedule. By removing time-based trading constraints, the system allows both domestic and international investors to participate more flexibly. This expanded access is anticipated to attract additional capital flows and strengthen price discovery in the OTC market.
Collaborative Market Infrastructure
Operational oversight of Mongolia’s OTC securities market remains with the Mongolian Association of Securities Dealers, which continues to manage day-to-day market functions. The blockchain technology underpinning the trading system was developed and implemented by AND Global Group through its fintech subsidiary, AND Denode. This collaboration highlights the growing role of domestic technology firms in shaping the future of national financial infrastructure.
Automated payment settlement was made possible through a strategic partnership with the Mongolian Central Securities Depository. By integrating settlement processes directly into the blockchain framework, the system ensures that trades are cleared and settled securely and efficiently. This integration reduces counterparty risk and enhances overall market integrity.
Positioning Mongolia in Global Financial Innovation
The successful deployment of blockchain technology in securities trading places Mongolia at the forefront of capital market innovation. By leveraging distributed ledger technology, the country is improving the efficiency, security, and transparency of its domestic markets while aligning with global trends in digital finance.
Beyond national benefits, the initiative contributes to broader discussions on how blockchain can be applied to regulated financial markets worldwide. Mongolia’s experience demonstrates that with careful testing, regulatory engagement, and institutional collaboration, blockchain-based systems can operate at scale in live market environments.
As the OTC market continues to adapt to the 24/5 trading model, stakeholders anticipate further innovation and adoption. The transition reflects a strategic effort to build a more inclusive, resilient, and technologically advanced capital market ecosystem, reinforcing Mongolia’s role as an emerging leader in the application of blockchain within global finance.
