Nigerian startup Daya has launched a new platform, Daya Stocks, offering tokenized versions of US stocks and exchange-traded funds to African investors. This initiative aims to democratize access to global financial markets by allowing users to invest with as little as $1. The platform represents a significant step in leveraging blockchain technology to break down traditional barriers to wealth creation on the continent.
Expanding Financial Access Through Tokenization
The Daya Stocks platform, currently in its testing phase, provides access to over 400 US-listed securities, including popular options like Nvidia, Tesla, and the S&P 500 ETF. Trading is available 24/7, a distinct advantage over conventional markets, and transactions incur a competitive fee of 0.25%. This model is designed to empower retail investors by offering fractional ownership in high-value international assets.
A Strategic Extension of Core Services
This launch is a natural progression for Daya, which built its foundation on providing stablecoin-powered payment infrastructure for African businesses. Co-founder Paul Joe stated that just as stablecoins made US dollars more accessible, tokenized stocks will do the same for US equities. The company is leveraging its existing infrastructure to pivot from facilitating global money movement to enabling global wealth creation.
The Underlying Infrastructure and Security
To ensure legitimacy and security, Daya issues its tokens through Ondo Global Markets, an entity backed by the US-based Ondo Finance. The underlying securities are purchased via the brokerage platform Alpaca and officially recorded through the Depository Trust Company (DTC). Furthermore, the issuer maintains collateral worth at least 100.5% of all outstanding tokens to safeguard investor assets.
Investors on the platform receive blockchain-based tokens that represent economic exposure to the securities, rather than direct legal ownership of the shares themselves. Any dividends earned are automatically reinvested after applicable taxes, and stock splits are passed through to the token holders. For now, these digital assets will remain within the Daya platform and cannot be transferred to external crypto wallets.
Navigating a Growing Market Trend
Daya's initiative is part of a broader movement within Nigeria's fintech landscape, with several companies exploring blockchain-based versions of traditional financial assets. This trend reflects a strategic effort to broaden the application of blockchain technology beyond digital currencies and into mainstream finance. For these firms, tokenized equities open up new revenue streams while lowering the barrier to entry for retail investors.
The global market for tokenized real-world assets is projected to expand significantly, with a McKinsey report forecasting a potential value of $2 trillion by 2030. This growth is fueled by the efficiency of blockchain, which can reduce settlement times and make markets more accessible. Daya plans to monetize its product through transaction fees, serving both individual investors and businesses via APIs.
The launch of Daya Stocks marks a pivotal moment for financial inclusion in Africa, utilizing innovative technology to provide access to global investment opportunities. By offering fractional ownership of US securities, the company is actively working to democratize wealth creation for a new generation of investors. Looking ahead, Daya aims to eventually tokenize Nigerian securities for a global audience, signaling a long-term vision for a more interconnected financial ecosystem.
Source: TechCabal