JSE + Blockstation – Piloting Towards Supporting and Listing Security Tokens

Announcement

This past week has been a productive, and promising, one with regards to digital securities. For example, we saw not only the launch of the long-awaited tZERO platform, but promising statements regarding the Jamaica Stock Exchange and Blockstation were released.

Over the past 60 days the Jamaican Stock Exchange has been participating in a pilot program with Blockstation. The primary goal of the program was simple – develop the ability to host digital securities. Upon achievement, this traditional exchange would become one of the first of its kind to do so worldwide.  If successful, others will surely follow suit.

First Movers Advantage

Whether the change occurs in 2019, or a later year, it is clear that traditional finance will eventually support digital securities. For the time being, the race is on to establish a ‘first mover advantage’. With rumblings of a NASDAQ platform supporting digital securities, tZERO, OFN, and others, the Jamaica Stock Exchange and Blockstation have everything to gain by throwing their hat in the ring.

Memorandum of Understanding

Jamaica Stock Exchange originally selected Blockstation to perform the pilot program,in August of 2018. The search that lead to Blockstation was extensive, and global.

These first 60 days are simply the first stage, in a multi-stage process. If successful, Blockstation and Jamaica Stock Exchange envision themselves as potential rivals to companies such as the highly anticipated Bakkt.

At the formation of the alliance, the Jamaica Stock Exchange signed an MOU with Blockstation.  As a result, this established the understanding that their alliance would continue into the future through future endeavours. The companies seem to be well suited in working together, with the success being seen thus far through the pilot program.

Commentary

Representatives from each company gave the following statements.

Jai Waterman, Cofounder of Blockstation, stated,

“We are excited to have successfully implemented the first real end-to-end digital asset trading ecosystem with the JSE within their regulated environment…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.”

Marlene Street Forrest, Managing Director of Jamaica Stock Exchange, stated,

“The pilot has been very smooth so far and we are quite happy with the results…We are looking forward to moving to the next stage of the pilot which would eventually include the listing of security tokens.”

Blockstation

Blockstation is based out of Toronto, and was founded in 2015. Above all, Blockstation strives to integrate blockchain solutions within traditional stock exchanges. This means providing end-to-end services ranging from trading, to settlement, and more.  All services in high demand.

Company operations are spearheaded by Cofounders Jai Waterman, and Marko M. Hafez.

Jamaica Stock Exchange

The Jamaica Stock Exchange is based out of Kingston, Jamaica. The company began operations over 40 years ago, in 1969. In the time since, the exchange has grown to become synonymous with trading in Jamaica.

Managing Director, Marlene Street Forrest, has overseen operation since the year 2000.