TL;DR,

• Luno introduces tokenized stocks in South Africa and Nigeria, allowing investors to access US equities through blockchain technology with lower barriers to entry.
• African investors can now purchase fractional shares of major US companies through Luno’s platform, bypassing traditional forex complications and high fees.
• The new tokenized stock feature offers 24/5 access, instant settlement, and integration with crypto assets on a single secure platform.

Luno, one of Africa’s crypto pioneers and exchanges, has brought tokenized stocks to South Africa and Nigeria. Today, forex, crypto trading and stock trading are a normal 9 to 5 for various regions in Africa. South Africa alone has a daily turnover of $20 billion within the forex market, while Nigeria’s crypto ecosystem is projected to surpass $2.4 billion in 2025.

Introducing fractional shares is a new attempt at democratizing new avenues for investments. Luno’s new features introduce avenues to invest in US stocks, forgoing the usual foreign exchange complications, high fees and time zone limitations.

Tokenized Stocks Democratize Investment Opportunities for African Traders

Understanding What Tokenized Real-World Assets Are

For context, tokenized stocks represent digital versions of traditional equities. Think of it as a merger between decentralization and the stock markets. Blockchain-based tokens mirror the value of actual shares with an added twist, such as smaller purchases accounting for the disparities between the US dollar and African currency.

Local investors can now diversify their portfolios by buying tokens backed by real shares held in regulated custody. Security is a non-issue since underlying equities are secured by established financial institutions. Luno comes in by offering the blockchain technology, making access, faster transactions via its digital wallets, and easier fiat payment rails a non-issue.

South Africa’s Rapid Adoption: A Proof of Concept

Luno initially launched the product in South Africa in August, given its ample market($20 billion daily turnover). Today, over 10,000 South Africans quickly joined the platform, showcasing the demand for accessible global investment options.

“We launched with 44 stocks,” explained Marius Reitz, Luno’s general manager for Africa and Europe. “Since launch, we have added 15 more stocks, and we also added exchange-traded funds, including the S&P 500, which is one of the favourites among our customers.”

According to the platforms, its tokenised shares involved a carefully structured partnership with Kraken’s xStocks and Backed Finance. Together, these entities enable easy purchases of the stocks while ensuring their products are channelled through regulated entities. Each user now has direct access to the US markets with the bonus of fractional shares.

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Expanding the Frontier: Luno Launches in Africa’s Crypto Hub, Nigeria

The new services didn’t stop there, Luno recently expanded its tokenized stocks to Nigeria, a month after South successful debut. Nigeria, Africa’s leading blockchain hub, now has direct access to global equities in its local currency.

Ayotunde Alabi, CEO of Luno Nigeria, elaborated on this milestone.

Global markets have always been an exclusive club, but technology now allows us to break down those walls.

 

With tokenised stocks, we’re giving millions of Nigerians a genuine chance to invest in the same world-leading companies – from Apple and Tesla to Nvidia and Microsoft – on equal footing with investors anywhere, in a way that’s simple, transparent, and built for the realities of our market.

Nigeria has fully embraced digital assets despite the region’s low financial inclusion rate. Despite various issues with its CBDC, its stablecoin has kicked off with many adopters using it to access broader financial markets. Luno’s new services capitalize on this, offering a direct means to invest in US stocks, broadening many portfolios.

The Core Advantages: Speed, Accessibility, and Fractional Investing

The blockchain investment platforms offer various advantages, such as:

• Fractional Ownership: Invest in full shares or just a fraction, starting from as little as you choose.
• Instant Settlement: No delays; funds and assets are available immediately.
• 24/5 Access: Buy and sell shares beyond traditional market hours – 24 hours a day, 5 days a week. This will later expand to 24/7, including weekends.
• Single Platform: Seamlessly manage crypto and stocks within one secure app.

Luno’s underlying infrastructure caters to its transparency, security, while Kraken’s xStock offers access to the global markets.

“With traditional brokerages, investing in companies like Amazon or Google could require thousands of dollars for a single share,” explains Reitz. “Through tokenization, our users can invest with whatever amount they’re comfortable with, even just a few dollars.”

Regulatory Considerations for Tokenized Stocks

Tokenized real-world assets are a key element to fostering adoption in Africa. Luno’s choice for South Africa and Nigeria hinges more on adoption, but focuses on their regulatory progress. In South Africa, the Financial Sector Conduct Authority (FSCA) classified crypto-assets as financial products. Nigeria’s Investment and Securities Act (2025) gives complete regulatory oversight to its Securities and Exchange Commission (SEC) by classifying digital assets as securities.

RELATED: Nigeria SEC: Stablecoin Rules to Empower Users and Protect Markets

The added frameworks pioneer regulations that protect investors and encourage foreign investment.

“Nigeria’s Investment and Securities Act actually provides clarity here,” explained Alabi.

It defines a digital asset as any token that represents a debt or equity claim, or is otherwise used for investment. By that definition, our tokenized stock clearly qualifies as a security, and we treat it as such.

Luno understands one vital aspect: regulation fosters adoption. Innovations will always outpace regulatory oversight, but a wide gap between the two often leads to a rise in illicit activities, breaking down local and foreign trust. To succeed as a blockchain investment platform, Luno maintains an active dialogue with regulators in both countries.