The Jamaica Stock Exchange has announced plans to carry out a pilot to trial Bitcoin and Ethereum trading. According to a press release, the Canadian-based fintech company Blockstation will facilitate the trading. This makes the Jamaica Stock Exchange one of the world’s first stock exchanges to sign this type of agreement. Live trading of cryptocurrencies like Bitcoin and Ethereum in a regulated environment is a major step towards mass adoption.
The Jamaica Stock Exchange was named the world’s best-performing stock market in 2018 by Bloomberg, and part of the reason for this is because its stocks have grown over 300% in the last five years. Together with Blockstation, the stock exchange will show the financial world that digital assets and cryptocurrencies like Bitcoin and Ethereum can be safely traded through trusted broker members. This will make them like any other security, as they will be in full compliance with regulations. They aim to create an “inclusive, regulated market that is more accessible to institutions, as well as non-accredited investors”.
They completed the Master Agreement following a successful live-trading pilot in January this year. This included participation from the stock exchange’s broker-dealer members and the Jamaica Central Securities Depository (JCSD). The JCSD will provide depository and settlement services for securities traded electronically on the floor of the Jamaica Stock Exchange.
Digital Assets Like Bitcoin And Ethereum Are The Future Of Stock Exchanges
“This is an unprecedented opportunity for the JSE to diversify its product offerings and attract new listings and inbound investments.” said Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange. “We welcome retail investors [everywhere] to trade digital assets under a safe, efficient and transparent regulatory framework”.
The stock exchange plans to leverage the new agreement with Blockstation to support international Small and Medium Enterprises (SMEs). This will provide them with a streamlined process for raising capital in a compliant and transparent manner through STOs.
“We are incredibly excited [to bring] cryptocurrency and security tokens to mainstream investors,” said Jai Waterman, Blockstation’s Co-Founder and Chief Enterprise Architect. “Digital assets are the future of capital markets, and our turn-key solution paves the way for traditional financial institutions,’ he said. ‘We look forward to being part of the evolution of finance going forward”.