DragonFi Securities has received Securities and Exchange Commission approval to test a service giving qualified Philippine-based investors access to selected US stocks and exchange-traded funds under the regulator’s Strategic Sandbox.
The approval does not amount to a full public rollout. DragonFi said testing will begin in phases after the SEC validates its amended testing plan and client suitability protocols, starting with a closely monitored group before any expansion subject to further regulatory review and consent.
The SEC describes the planned offering as access to pre-approved US equities and ETFs. DragonFi’s own announcement uses the broader description of pre-approved global equities and ETFs. Both describe an over-the-counter depositary receipt model rather than a conventional overseas brokerage account.
DragonFi says the structure will create a Philippine-registered security counterpart to the underlying foreign security. The company also says overseas securities and cash will be kept under segregated institutional custody arrangements, while local client funds will remain segregated with licensed Philippine institutions.
Access to overseas investments will also be tied to an investor’s participation in the Philippine market. According to DragonFi, investors with certified domestic holdings may access approved foreign investments worth up to 50% of those holdings. Investors maintaining Personal Equity and Retirement Account, or PERA, holdings may invest up to the equivalent value of their Philippine PERA investments.
“This is a defining milestone for DragonFi and for Philippine investors. Filipinos should be able to participate in the world’s largest capital markets through a structure that is locally regulated, transparent and built with investor protection at its core,” said Jon Carlo Lim, Chief Executive Officer, DragonFi Securities Inc.
DragonFi is an SEC-licensed broker-dealer and an active Philippine Stock Exchange trading participant. It is also among the SEC-supervised PERA administrators listed by the Bangko Sentral ng Pilipinas.
The SEC Strategic Sandbox was established under Memorandum Circular No. 9, Series of 2024. It allows approved firms to test financial products or business models in a live but controlled environment, subject to defined limits and regulatory oversight. Participants must operate within their approved testing plans and inform customers that they are taking part in a sandbox, including disclosure of associated risks.
The SEC said it will use DragonFi’s testing period to assess the offering’s operating framework, investor safeguards, and regulatory implications. The results could also inform future rules covering similar services.