Jamaica Stock Exchange JSE is booming: In the past five years alone, the trading center has grown threefold. Now, the stock market newcomer, founded in 1968, wants to open the next chapter and thus safeguard future growth as well:
As the JSE announced this Wednesday, April 3, in a press release, it wants to enable customers on the one hand, on the one hand, the release of digital securities, so-called Security Token Offerings (STOs). On the other hand, with the blessing of the Jamaican securities regulator JCSD, the stock exchange wants to become the official trading place for cryptocurrencies like Bitcoin or Ether. In the future, one wants to attract investor interest worldwide to the Caribbean island.
For this purpose, the commercial center based in the capital Kingston already last year entered into a partnership with the Canadian fintech company Blockstation. Together with investors, both now want to explore the potential of crypto trading in a pilot trial.
This is an unprecedented opportunity for the JSE to expand its product offering and attract new investments. We welcome both local and global retail investors and companies to trade digital assets under a secure, efficient and transparent legal framework.
JSE director Marlene Street Forrest describes the joint venture with Blockstation.
STOs are designed to help small and medium-sized enterprises
As stated in the press release, one wants to underline the step that the trade in cryptocurrencies certainly have market potential, as long as it is fully regulated.
Blockchain technologies such as cryptocurrencies enjoy great popularity in the Caribbean. In February last year, however, the central bank of Jamaica had warned against investing in Bitcoin & Co. For example, they would not be covered by appropriate consumer protection measures.
On the other hand, however, it means that the STOs are intended to help small and medium-sized enterprises in particular. Until now, they have often been denied access to the stock market. With the help of digital securities, they should now be provided with an adequate means to raise capital.
Especially with small island states, the trend around STOs seems to be gaining momentum. In February, for example, the authorities of the Atlantic island of Bermuda gave their official blessing to the Security Token Fire as the country’s first digital security.
Also published on Medium.