The M-OTC platform of the over-the-counter market (OTC) has started its blockchain securities trading, adding a new page to the development of Mongolia’s financial sector. The use of blockchain technology will bring Mongolia’s financial market to a new level and create an opportunity to improve the security and liquidity of securities trading.
In 2021, since the M-OTC platform was first used, a total of 1.9 trillion MNT bonds were traded, and in November 2023, it received permission to test blockchain securities trading in the Sandbox regulatory environment of the FRC.
The first blockchain securities trading on the M-OTC platform was launched by the bonds of “LendMN NBFI” LLC and “Tera Unlimited” LLC, and “Tenger Capital LLC” and “Golomt Capital LLC” acted as underwriters, respectively.
The M-OTC platform was developed and introduced by And Systems LLC, a subsidiary of And Global Group, which also acted as a system developer for the introduction of blockchain securities trading. The M-OTC blockchain trading platform is designed to be able to trade using multiple blockchain networks. It promotes flexibility and accessibility.
The first blockchain securities trading under Sandbox regulation was carried out using the TEO blockchain network developed by Blockchain Solutions Ltd. TEO will ensure the security of OTC market trading data by using TEO’s private blockchain.
Mongolian Central Securities Depository (MCSD) will integrate blockchain securities trading with cash settlement, and this integration is designed to automate and expedite settlement operations. The ability to automate settlement and execute it 24/7 without time limits will significantly increase market liquidity and make it more accessible to investors.
Blockchain securities trading in the over-the-counter market not only proves Mongolia’s commitment to financial innovation, but also shows that it is a leading country in the global adoption of blockchain technology in securities trading.
