ULAANBAATAR, April 9, 2024 - Mongolia has initiated its first blockchain securities trading on the M-OTC platform, marking a significant advancement in the nation's financial sector. This integration of blockchain technology is set to elevate the Mongolian financial market by enhancing the security and liquidity of securities trading.
The M-OTC platform has facilitated the trading of 1.9 trillion MNT in over-the-counter corporate bonds since its inception in 2021. In November 2023, the platform was granted approval by the Financial Regulatory Commission (FRC) to conduct a pilot of blockchain securities trading within its Sandbox regulatory framework.
The first blockchain securities trades on the M-OTC platform involved bonds issued by LendMN NBFI JSC and Tera Unlimited LLC, with Tenger Capital LLC and Golomt Capital LLC serving as the respective underwriters and facilitating the trades.
The M-OTC platform was developed and introduced by AND Systems LLC, a subsidiary of AND Global Group, which also acted as the system developer for the introduction of blockchain securities trading. The M-OTC blockchain securities trading platform is designed to accommodate multiple blockchain networks, allowing securities to be traded over various blockchain, thereby enhancing trading flexibility and accessibility.
The first blockchain securities trading under the Sandbox environment was carried out over the TEO blockchain network, developed by Blockchain Solutions LLC. Utilizing TEO's private blockchain network helps ensure data privacy and security for the blockchain securities transactions in the OTC market.
Mongolian Central Securities Depository (MCSD) has integrated blockchain securities trading with cash settlements, and has automated the cash settlement process for blockchain securities trades. The ability to automate settlements and execute securities transactions 24/7 is expected to significantly boost market liquidity and investor accessibility.
The launch of blockchain securities trading in Mongolia's OTC market underscores the country's dedication to financial innovation and positions it as a global frontrunner in adopting blockchain technology for securities trading.
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First published at AND Global company website.