The Jamaica Stock Exchange has announced that it has partnered with Blockstation to enable the trading of crypto assets within “a recognized and secure regulatory framework.” The JSE revealed that it had completed a live workshop with an initial group of five members as well as a beta test with participating institutions. The new platform will make Jamaica one of a few countries that have implemented regulated trading of cryptos and follows similar moves by other pioneers such as Germany’s Boerse Stuttgart and the Swiss Stock Exchange.
Investors Interested in Cryptos
The JSE settled on Blockstation after conducting a comprehensive global search for a suitable partner, the exchange noted in a press release on August 14. Blockstation’s electronic communication network will facilitate the trading and clearing of crypto assets for the exchange’s broker-dealers, the exchange announced. Based in Toronto, Canada, Blockstation develops turn-key, end-to-end solutions for trading and clearing of crypto assets for international stock exchanges.
The decision to accommodate crypto trading was a result of the rising investor interest in the emerging asset class, JSE’s managing director, Marlene Forrest, stated. She also expressed her confidence in Blockstation’s cutting-edge technology:
We are excited to implement this service with our clients, satisfying considerable investor interest in digital assets. We are also proud to be at the forefront of bringing innovation to capital markets. We are very comfortable moving forward based on the training and support provided by Blockstation, and because their trading platform incorporates familiar compliance rules to ensure a fair marketplace.
The exchange did not disclose any further details regarding the platform. The cryptos that will be supported and the official launch dates remain anyone’s guess. JSE did, however, state that it would continue to collaborate with Blockstation, having signed a Memorandum of Understanding.
JSE’s announcement follows similar moves by other stock exchanges which are gradually embracing cryptos. Previously thought of as too volatile to invest in through formal channels, the perception of cryptos has changed as investors seek to capitalize on their rising profile and popularity. The announcement also comes at a time when the market has slumped drastically, with some cryptos like Ethereum sinking to record lows for the year.
Boerse Stuttgart announced a similar move two weeks ago as part of its digitization efforts. The German exchange is developing a platform that will support ICOs, facilitate the trading of crypto assets, and offer safe custody solutions to its clients. The exchange’s CEO stated that the exchange would take advantage of its technical know-how and its experience in financial markets to bring credibility to the trading of cryptos, thereby promoting their acceptance.
Boerse Stuttgart developed the platform as a response “to demand from both retail and institutional investors for a regulated and reliable environment for trading with cryptocurrencies,” its CEO explained. In May, the exchange announced the release of a crypto trading application known as BISON which targets new crypto traders. The app is fee-free and quite easy to use. It also has a feature that uses artificial intelligence to filter the most relevant crypto news from social media platforms, as well as a market info section that informs users about how their assets are performing.
The Swiss Stock Exchange also joined the party in July, announcing that it would help tokenize traditional financial instruments like securities. And just like Boerse Stuttgart, the Swiss exchange will also offer custodial solutions and an ICO-issuing platform.