Africa-founded cryptocurrency exchange Luno has launched tokenised global stocks in Nigeria, becoming the first continent-based platform to offer direct Naira-denominated access to over 60 major international companies and exchange-traded funds.
The service launched September 8, allowing Nigerian users to invest in US stocks and ETFs for as little as ₦100 ($0.07) through partnerships with xStocks by Kraken and Backed Finance, according to the company’s announcement.
Nigerian investors can now purchase fractional shares of companies including Apple, Tesla, Nvidia, and Microsoft without requiring offshore accounts, foreign currency conversions, or adherence to US market hours. The platform operates 24 hours daily, five days weekly, with plans to expand to continuous weekend trading.
The Nigeria launch follows successful deployment in South Africa, where over 10,000 users invested in tokenised US equities during the first month of availability. Luno’s South African operation demonstrated strong market demand for simplified global investment access across African markets.
The tokenised stocks are backed by actual underlying shares held in regulated custody, ensuring security and regulatory compliance through established global financial partnerships. This structure provides Nigerian investors with legitimate ownership stakes in international companies while maintaining local currency convenience.
Nigeria’s financial landscape presents significant opportunities for investment democratization. Despite the country achieving 74 percent financial inclusion rates, less than five percent of adults participate in capital markets due to high entry barriers and complex access requirements.
Foreign currency scarcity and exchange restrictions have historically limited Nigerian access to international investment opportunities. Luno’s platform addresses these constraints by enabling direct Naira investments while handling currency conversion and regulatory compliance internally.
“Global markets have always been an exclusive club, but technology now allows us to break down those walls,” explained Ayotunde Alabi, CEO of Luno Nigeria. The executive emphasized the platform’s goal of providing millions of Nigerians equal footing with international investors.
Luno serves over one million users in South Africa and plans to extend tokenised stock offerings to additional African markets, positioning the company as a pioneer in democratizing global investment access across the continent.
The service builds on Luno’s established cryptocurrency trading platform, which has operated in Nigeria since 2017. The company’s reputation in digital asset trading provides credibility for expanding into traditional financial instruments through innovative tokenization technology.
Key features include fractional ownership enabling investment in partial shares, instant settlement eliminating traditional trading delays, and unified platform management combining cryptocurrency and stock investments within a single application interface.
Nigeria’s economic environment shows improving stability with inflation declining from 31 percent annual average in 2024 to 23.7 percent year-on-year in April 2025, creating more favorable conditions for retail investment participation.
The tokenized stock launch addresses persistent barriers preventing Nigerian participation in global capital markets. Traditional international investment requires complex procedures, minimum deposit requirements, and navigation of foreign regulatory frameworks that exclude most retail investors.
Luno’s approach transforms global stocks into digital tokens that behave like traditional shares while operating within familiar cryptocurrency infrastructure. This hybrid model combines the accessibility of digital assets with the underlying value of established companies.
The platform’s 24/5 trading schedule provides significant advantages over traditional markets, allowing Nigerian investors to react to global news and market movements regardless of standard exchange hours. Extended trading windows accommodate local time zones and work schedules.
Partnership arrangements with Kraken’s xStocks and Backed Finance provide institutional-grade custody and regulatory compliance, addressing security concerns that often deter retail investors from cryptocurrency-related financial products.
Financial inclusion progress in Nigeria has shown undeniable successes with consistent banking sector onboarding, though overall exclusion rates continue exceeding official targets, highlighting the continued need for accessible investment solutions.
The company faces regulatory considerations as Nigerian financial authorities continue developing frameworks for cryptocurrency-adjacent financial products. Clear regulatory compliance through established global partnerships positions Luno favorably for operating within evolving regulatory environments.
Competition from traditional brokerages and emerging fintech platforms will likely intensify as global investment access becomes increasingly important for African retail investors. Luno’s first-mover advantage in tokenised stocks provides competitive positioning within this growing market segment.
Success in Nigeria could accelerate expansion plans across African markets where similar barriers prevent retail investor participation in global capital markets. The continent’s growing digital infrastructure and increasing smartphone adoption support expanded financial service access.
The launch represents broader trends toward financial democratization through technology innovation, particularly in emerging markets where traditional financial infrastructure has historically excluded retail participants from global investment opportunities.
Source: newsghana.com.gh
