Jamaica’s stock exchange is set to be one of the pioneering exchanges in the world to facilitate the trading of digital tokens, according to a press release. To implement the project, the exchange has signed a Memorandum of Understanding (MoU) with a Canadian fintech company, Blockstation. Per the release, the firm will help “facilitate the crypto-trading services.”
Regulatory framework
The signed MoU will enable the two entities to provide an avenue where the digital tokens can be traded without the uncertainties that characterize current trading platforms. The exchange provides a regulatory framework that hence solving problems that have denied many investors the opportunity to join the market. The reason for this is the reports of numerous exit scams that have been reported which involve platforms that are barely able to police their networks to keep scammers at bay.
On its part, the Canadian-based firm brings on board a network that is well suited for managing cryptocurrency trades while at the same time performing the clearing and settlement of blockchain tokens.
Platforms for digital asset exchange
According to reports, the Jamaica Stock exchange may not be the only institution angling at provision of a secure platform for cryptocurrency trading. Germany’s second largest stock exchange has been quoted in various media as having plans to include digital assets on its platform. Per a statement shared to media houses in early August this year, the exchange revealed plans to “develop a new platform for Initial Coin Offerings as well as a multilateral crypto trading venue.”
The reasons for the move is to feed the rising demand from both retail and institutional investors for a secure avenue through which they can channel their money. Needed is a regulated environment for trading digital assets that guarantees reliability and safety of the assets.
Further, the Malta Stock Exchange revealed last month its plans to build a new trading platform with high-grade security features and one that could be utilized by institutional investors interested in token trading. The move is a joint project with digital asset exchange OKEx.