The Eastern Caribbean Securities Exchange (ECSE), a regional securities market established by the Eastern Caribbean Central Bank, is planning to pilot the trading of digital assets on its platform, including Bitcoin (BTC), Ether (ETH), and security token offerings (STOs) later this year.
According to an announcement by the Eastern Caribbean Central bank-backed exchange, the move would see the ECSE partner with Blockstation, an end-to-end platform that aids stock exchange participants in listing, trading, clearing, and settlement of digital assets.
The ECSE noted that the development is coming after it held initial talks with Blockstation in late 2018, and watched the startup subsequently conduct successful trials of the solution with the Jamaica Stock Exchange (JSE), and a future pilot with the Barbados Stock Exchange (BSE).
Commenting on the development, Trevor E. Blake, Managing Director at ECSE, stated that the exchange is committed to taking a leading role in the securities market via the offering of BTC, ETH, and STOs.
“This pilot […] supports the ECCB’s goal to remove financial frictions, promote financial stability, and expedite growth and development in the member countries of the Eastern Caribbean Currency Union (ECCU),” Blake added.
As per the report, the Blockstation platform would be leveraged by the ECSE to provide full insurance cover for investors’ digital assets, more secured KYC/AML processes, decentralized custodianship that requires multi-sig authorization, among others.
Additionally, since BTC and ETH will be added to other payment alternatives, the platform would create room for international investors to participate in the trade of various digital assets, thus enabling smaller investors to participate in exciting offerings because of the low cost associated with blockchain-based transactions.
The Eastern Caribbean Central Bank had already declared its intention last year to launch the digital version of the EC dollar (DXCD).
Blake noted that the pilot listing of major cryptocurrencies on the ECSE, as well as the development of the country’s Central Bank-backed Digital Currencies (CBDC), would help to strengthen its economy.
Author: Lele Jima