Jamaican Stock Exchange (JSE) Prepares for Arrival of Security Tokens

In January, the JSE completed a 60-day trial period for trading and management of digital assets, opening the doors for new potential listings.

The Jamaican Stock Exchange, in partnership with Blockstation, completed trials for trading and managing digital assets, announced the two organizations in a recent press release. The trial period may open doors for trading additional assets, including secuity tokens.

“The pilot has been very smooth so far and we are quite happy with the results,” said Marlene Street Forrest, Managing Director of the JSE. “We are looking forward to moving to the next stage of the pilot which would eventually include the listing of security tokens.”

The JSE is an up and coming market, recently profiled by Bloomberg. In the past few years, the stock market boom in the country raised stock valuations by 300%. For now, the JSE is relatively unknown to Western funds or investors, but there are hopes that digital assets may increase investment interest:

“We are excited to have successfully implemented the first real end-to-end digital asset trading ecosystem with the JSE within their regulated environment.” said Jai Waterman, Blockstation’s Co-Founder and Chief Enterprise Architect. “We are looking forward to onboarding, through the pilot exercise, the next wave of brokers and international investors who can enjoy the benefits of safe digital currency access through trusted financial institutions.” 

Security tokens are facing several crucial elements before they manage to bring activity back to the markets. Beyond fully legal registration of the asset and screening the buyers, a secondary market is needed. So far, only a handful of markets have appeared to trade security tokens, as the sector is in its early stages. Markets include those offered by Extauri in Europe, as well as Open Finance Network and the tZero market by Overstock.

The JSE is extremely attractive as a market for digital assets, as it already offers a robust electronic trading system. Digital assets are a good fit for already existing trading platforms. Blockstation additionally offers expertise in the building of digital asset platforms. The group, based in Canada, has worked since 2014 and offers compliant listing, trading, clearing, settlement and custody of digital assets and security tokens.

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