Sunday 31 May, 2020

JSE to pilot bitcoin trading

Marlene Street Forrest, Managing Director of the JSE.

Marlene Street Forrest, Managing Director of the JSE.

The limited pilot to trade bitcoin through the Jamaica Stock Exchange (JSE) and participating broker-dealers will be launched soon.

The trial will also facilitate the trading of ether - a digital bearer asset similar to a bond.

This follows the completion of a master agreement between the JSE and Blockstation, a leading Canadian FinTech company to enable live trading of digital assets and security tokens on the exchange, the JSE announced on Wednesday.

JSE and Blockchain earlier this year, completed a successful live-trading pilot, which included participation from the JSE’s broker-dealer members and the Jamaica Central Securities Depository (JCSD).

“Blockstation has been a good partner over the past year, working closely with us and our stakeholders to ensure that their platform satisfies every requirement,” said Marlene Street Forrest, Managing Director of the JSE.

Street Forrest said the partnership provides an unprecedented opportunity for the JSE to diversify its product offerings and attract new listings and inbound investments.

"We welcome retail investors and companies both locally and around the globe to trade digital assets under a safe, efficient and transparent regulatory framework," she said. 

For his part, Jai Waterman, Blockstation’s Co-Founder and Chief Enterprise Architect said the company’s turn-key solution paves the way for traditional financial institutions to easily adopt this new, game-changing asset class.

“We are incredibly excited to reach this milestone in our partnership with the JSE, bringing digital assets including cryptocurrency and security tokens to mainstream investors,” he said, adding: “We look forward to being part of the evolution of finance going forward.”

Blockstation provides one of the first end-to-end digital asset trading platforms for the stock exchange network, offering compliant listing, trading, clearing and settlement of digital assets and security tokens to the entire ecosystem of broker-dealers, investors, depositories and regulators.

The JSE plans to leverage the new agreement with Blockstation to:

● Support international Small and Medium Enterprises (SMEs) by providing them with a streamlined and simple process for raising capital in a compliant and transparent manner through security token offerings (STOs).
● Demonstrate market leadership by showing the financial community that digital assets and cryptocurrencies can be traded safely through trusted broker members like any other security, in full compliance with regulations.
● Create an inclusive, regulated market that is more accessible to institutions, as well as non-accredited investors who would otherwise be excluded from lucrative opportunities in the digital asset space.
● Streamline the public disclosure process for SMEs, making it easier and more cost effective to list shares and other assets.

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