What do buying shares in Saudi Arabia, investing in Turkish companies, accessing US markets, managing a state crypto reserve, and millions of brokerage accounts in Kazakhstan have in common?
Behind all of this stands an institution that rarely attracts public attention, yet without it modern financial markets simply cannot function. This institution is the Central Securities Depository.
In an exclusive interview for DKNews.kz, Edil Medeu, Chairman of the Management Board of Kazakhstan’s Central Securities Depository, explains in clear and simple terms how the country is moving beyond a purely domestic financial system and positioning itself as a regional financial hub. He also discusses why depository links from the Middle East to the United States matter, how state crypto assets will be stored, and why decisions made today will shape the future of Kazakhstan’s investment infrastructure.
“Many readers know stock exchanges, but not everyone understands what a Central Securities Depository is”
– Mr. Medeu, many readers are familiar with stock exchanges, but not everyone understands what a Central Securities Depository is. Could you explain in simple terms what the CSD does?
– Imagine that you have bought shares in a company. Where are they physically located? Who guarantees that they have not been sold twice? Who checks that the money has reached the seller and the securities have been delivered to the buyer?
This is what a depository does, in simple terms. Unlike cash, securities cannot be physically held, put in a pocket, or stored in a safe. They exist in dematerialized form – as electronic records, essentially digital entries in the accounting systems of the Central Securities Depository.
The Central Securities Depository is a critical part of market infrastructure. Without us, no securities transaction on the exchange can be settled. We keep records of all securities in the country, ensure settlement, and guarantee that transactions are executed exactly as agreed by the parties.
photo by Maxim Zolotukhin/DKNews.kz
“2025 was truly a successful year”
– How successful was 2025 for you?
– The year can indeed be described as successful. We reached a qualitatively new level: we are transforming from a national accounting system into a regional financial hub. If previously we simply stored and recorded Kazakhstani securities, today we are building bridges to international capital markets – from the Middle East to the United States.
The figures speak for themselves, but what matters more is trust. Today, 54 percent of our clients come from 12 countries, including the Astana International Financial Centre jurisdiction, with 21 client-deponents. This shows that not only local professional market participants see us as a reliable infrastructure, but foreign players are also becoming our clients.
Christopher Pike/Bloomberg/DKNews.kz
From Saudi Arabia to Tajikistan: expanding geography
– You have opened access to Middle Eastern markets. Is this really needed for Kazakhstani investors?
– Yes, it is both needed and important. Previously, Kazakhstani investors who wanted to buy shares of companies from the Middle East faced many barriers. They needed accounts with foreign brokers or banks, an understanding of local regulations, and the ability to conduct currency transactions.
Now, through First Abu Dhabi Bank, we have created a direct channel. In the near future, our clients will be able to use Central Securities Depository accounts to settle securities transactions on the stock markets of Saudi Arabia, Oman, Bahrain, Egypt, and the United Arab Emirates. These markets represent billions of dollars in capitalization and offer very different investment opportunities.
– Why is a depository bridge with Turkey needed?
– Turkey is a large market with a population of 85 million and one of the major financial centers in the region. Turkish companies have long been looking toward Central Asia, while Kazakhstani investors are interested in Turkish assets. Previously, mutual investment was technically complicated.
Together with Turkey’s Central Securities Depository (MKK) and Ziraat Bank, we built a direct depository bridge. Now a Turkish investor can buy Kazakhstani securities in the same way as securities on Borsa Istanbul. And vice versa. This is real financial integration, not just declarations of cooperation.
– Are you also working with Azerbaijan and Tajikistan?
– Central Asia and the Caucasus are a key focus of our development. Frankly speaking, the region is financially fragmented. Each country operates within its own accounting system, and cross-border investment remains limited. We want to change this situation.
Recently, we established direct depository bridges with Azerbaijan and Tajikistan, adding to existing bilateral accounts with Armenia and Kyrgyzstan.
Given the size of its economy and the level of infrastructure development, Kazakhstan can become the center around which a regional system is built. Our long-term goal is to become a regional settlement hub, with Kazakhstan acting as a central node that ensures compatibility of accounting processes and expands mutual access for market participants.
Our strategic vision is simple: the broader the network of direct depository links and the higher the level of technological compatibility, the more resilient and competitive the market infrastructure becomes.
DKNews.kz
From Euroclear to BNY Mellon: Kazakhstan’s CSD on the global map
– How extensive is your international network?
– We have established connections with key global market players. Euroclear and Clearstream are the two largest international depositories through which most cross-border securities transactions in Europe are processed. BNY Mellon is one of the leading custodians in the United States.
These links mean that Kazakhstan’s depository is integrated into the global financial architecture. This is not just about prestige. It gives our clients real opportunities to work with foreign assets through transparent and regulated infrastructure.
– Does this mean Kazakhstani investors can buy US or European shares through you?
– Yes, through brokers who are our client-deponents. We provide the accounting and settlement infrastructure. This reduces risks, simplifies procedures, and makes investments more accessible.
Numbers that reflect growth
– Can you confirm your success with figures?
– For an infrastructure institution, what matters is not just growth, but what that growth represents. Growth means that market participants trust the system and increasingly use regulated channels.
By the end of 2025, the volume of domestic assets held in custody at the Central Securities Depository exceeded KZT 186.3 trillion, which is 11 percent more than the previous year. Foreign assets held in custody amounted to USD 10.7 billion.
The number of deponents reached 119, an increase of 30. The number of brokerage accounts grew by nearly 1.5 times, exceeding 5 million. At the beginning of the year, the depository serviced more than 2,800 securities issues. The number of transactions in the nominee holding system amounted to around 590,000.
Pawel Litwin/Adobe Stock
Crypto custody: when the state stores digital assets
– Digital assets are a popular topic. Are you entering this area as well?
– We are not chasing trends. However, digital assets have become a reality of the financial market. If governments or institutional investors work with cryptocurrencies, someone must ensure their secure storage and proper accounting.
That is why the Central Securities Depository is launching crypto custody – an institutional-grade service for storing digital assets. This is not a standard crypto wallet. It is a solution with risk controls, compliance procedures, and multi-layer security.
– Who is this service for?
– The first client is the National Investment Corporation, which will manage the national strategic crypto reserve. This sets very high requirements: maximum security, transparency of operations, and compliance with regulatory standards.
In the future, the service may be offered to institutional clients such as funds, companies, and large investors that require reliable storage of crypto assets in a controlled environment.
Classical custody: a new service in 2026
– You have obtained a custodial license. What does this add?
– The Central Securities Depository has long gone beyond the traditional understanding of a classic depository. In addition to depository activities, we provide a wide range of services.
Alongside our existing license for certain banking operations, we have obtained a custodial license from the financial regulator. This allows us to offer a full range of custody services to a broad range of clients.
This is an important expansion, especially for institutional clients who want one provider capable of covering all custody and servicing needs for their investment portfolios.
– When will this service be launched?
– We obtained the custodial license at the end of 2025. In 2026, we will start with a pilot project for selected clients. This will allow us to test processes, ensure system stability, and then scale the service. We prefer to launch carefully rather than quickly.
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2026: focus on Asia and technological transformation
– What are your plans for the current year?
– There are three priorities.
The first is continued expansion of our international network, with a focus on Asian markets. We are looking toward China, including Hong Kong. If we succeed in establishing links with Chinese infrastructure, this will open new opportunities for both Kazakhstani and regional investors. We could become a bridge between Central Asian and East Asian investors.
The second priority is technological transformation. Financial infrastructure must be not only reliable, but also fast, user-friendly, and scalable. We are investing in digital platforms, process automation, and cybersecurity.
The number of investors in Kazakhstan is growing rapidly. The fastest growth in account numbers occurred in 2023. In 2024–2025, growth became more stable, with more than one million new accounts added each year. By the end of 2025, growth exceeded 40 percent, and the total number of brokerage accounts surpassed 5 million.
Kazakhstani investors are used to convenient banking applications and expect the same level of usability from brokerage platforms and market infrastructure.
The third priority is service quality. We want brokers, asset managers, and investors to receive the simplest and most transparent service possible. This includes standardized procedures, clear rules, and responsive support.
Competition and positioning
– Is there competition in the region?
– Yes, there is. Every country is developing its own infrastructure. However, Kazakhstan has clear advantages: a developed legal framework, experience working with international institutions, a geographic position between Europe and Asia, and political stability.
We are not afraid of competition. On the contrary, it motivates us to continuously improve.
A key message to the market
– What would you like to say to investors, companies, and market participants?
– The Central Securities Depository is not just a local accounting system for securities. It is a regional-level infrastructure that connects Kazakhstan with global financial markets.
We provide Kazakhstani and regional players with access to international capital markets. Foreign portfolio investments enter the region through us. We are building bridges between post-trade systems of different countries.
The results of 2025 show that the strategy is working. We will not stop at what has been achieved. Our goal is to make Kazakhstan a regional financial hub through which capital flows across Central Asia and neighboring regions.
We are ready for this role.
