Nigeria’s capital market has entered a new phase of digital development following the launch of the NASD Digital Securities Platform by the NASD OTC Securities Exchange.
The platform, which is now operational, establishes what NASD described as Nigeria’s first regulated exchange market for the issuance and trading of tokenized securities. The initiative is intended to introduce blockchain-based infrastructure into the country’s capital markets while providing companies and investors with access to regulated digital financial products.
NASD said its first public digital securities offering is expected to take place in early September. The debut is expected to serve as the initial stage of a broader effort to develop a regulated digital securities ecosystem involving issuers, brokers, investors and other market participants.
The NASD Digital Securities Platform has created Nigeria’s first regulated market infrastructure for issuing, trading, clearing and settling tokenized securities.
The platform uses blockchain technology developed by Blockstation Inc. and is designed to support the entire lifecycle of digital securities. Its functions include the issuance of tokenized assets, secondary market trading, transaction clearing and settlement within an institutional-grade market environment.
Blockchain Infrastructure Targets Greater Market Efficiency
NASD said the new platform would allow companies to issue tokenized securities through regulated market infrastructure while enabling investors to participate in a new category of digital investment products.
Chinwendu Ekeh, acting managing director and chief executive officer of the NASD OTC Securities Exchange, said the platform was expected to improve transparency and make the issuance and trading of securities more efficient. He indicated that the initiative would introduce modern market infrastructure capable of supporting the next stage of development in regulated capital markets.
Ekeh added that NASD expected to work with issuers, brokers and investors as participation in the new market expanded.
The exchange said the blockchain-based system is intended to improve transparency, streamline securities transactions and broaden access to capital within Nigeria’s regulated financial framework.
NASD said the project was designed to modernize Nigeria’s capital markets by using technology to increase liquidity and encourage broader investor participation. The exchange also expects the platform to provide businesses with additional avenues for raising capital while expanding the range of investment opportunities available to market participants.
Jai Waterman, chief executive officer of Blockstation Inc., said Nigeria’s relatively young and entrepreneurial population created significant potential for expanding participation in regulated capital markets.
He said that broader access to capital formation could contribute to long-term wealth creation and economic growth. Waterman added that Blockstation viewed its role in supporting the launch of the digital securities platform as an important contribution to the development of Nigeria’s financial infrastructure.
Collaboration Supports Future Digital Securities Growth
Damola Akindolire of TK Tech Africa said the establishment of a new regulated market required close coordination among technology companies, market operators, regulators and industry participants.
Akindolire indicated that the launch had created a foundation for future digital securities offerings and could support the continued development of blockchain-based financial products in Nigeria.
NASD said it plans to expand the platform by engaging issuers, brokers, issuing houses, institutional and retail investors, small and medium-sized enterprises, and other participants across the digital securities market.
The exchange said additional securities issuances and market-related announcements were expected after the September launch. Its expansion strategy is expected to focus on developing a broader ecosystem that can support companies seeking financing and investors looking for regulated digital investment opportunities.
The initiative adds to growing interest in tokenization within Nigeria’s capital markets as exchanges and regulators examine technology-based methods for improving access to financing while maintaining established regulatory standards.
NASD OTC Securities Exchange operates Nigeria’s over-the-counter securities market and provides trading and settlement services for unlisted public companies and other securities that are not available on the country’s primary stock exchange.
The launch of the digital securities platform could position NASD as an important participant in Nigeria’s transition toward blockchain-enabled capital market infrastructure, with further issuances expected to determine the scale and adoption of the new regulated market.