NASD Plc has received regulatory approval from the Nigerian Securities and Exchange Commission (SEC) to launch its Digital Securities Platform (N-DSP) under the Regulatory Incubation (RI) Programme. This decision comes on the heels of the Central Bank of Nigeria's recent lift of the so-called crypto ban, marking what industry watchers describe as a watershed moment for the industry.

The approval signifies a significant milestone in driving a compliant and secure environment for digital asset investments, said Eguarekhide Longe, Managing Director of NASD Plc. He highlighted the platform's goal to empower young investors by providing access to promising digital assets. The N-DSP plans to disrupt conventional debt and equity markets, leveraging blockchain technology to bring speed and liquidity to traditional asset classes.

Longe sees his platform as an infrastructure that could play important roles for the African diaspora seeking to send money home through local investment opportunities. Tokenisation, he asserts, can provide new capital inflows for local film creators and real estate companies, creating market opportunities and fixing an existing housing deficit.

“Our objective is to empower millions of young investors with access to promising digital assets, ensuring they can make purchases with confidence in a completely compliant and secure investment environment. Nigeria currently ranks second globally, for blockchain wallets, and our Exchange is poised to support high-quality assets, thriving on the blockchain,” he said.

“We are confident that this platform will play a pivotal role in propelling Nigeria into a new era of economic growth and development,” said Jai Waterman, CEO, of Blockstation, NASD’s technology partner.

This development follows last year's reports on the SEC’s position on digital assets. The Abuja-based commission announced applications for digital exchanges on a trial basis. Tokenized coin offerings backed by assets such as equity, debt, and property, were considered, but not cryptocurrencies, which at the time were banned from transacting with banks.

Per Bloomberg, the SEC intends to register fintech firms as digital sub-brokers, crowdfunding intermediaries, robo-advisors, fund managers, and tokenized coin issuers. The one-year regulatory incubation period allows the SEC to monitor the operations of intending digital exchanges closely.