DragonFi Securities Inc. is testing a bridge between Filipino investors and Wall Street, potentially giving the brokerage—and eventually the wider industry—a new way to offer United States (US) stocks without abandoning the local market.

The Securities and Exchange Commission (SEC) said Thursday it gave DragonFi final approval to begin testing the offering under its regulatory sandbox, or SEC StratBox.

Under the test, eligible Philippine-based investors will be able to gain exposure to pre-approved US equities and exchange-traded funds through an over-the-counter depositary receipt model.

For DragonFi, the sandbox offers a controlled route to stretch its product lineup beyond Philippine securities and test investor appetite for overseas assets before any broader rollout.

But the experiment could reach beyond a single brokerage.

If successful, DragonFi’s test could help establish a regulatory pathway for other Philippine brokers looking to bring foreign investment products closer to local investors, potentially widening competition in an industry still heavily centered on domestic securities.

The model also seeks to prevent overseas investing from simply draining activity from the Philippine market.

DragonFi will consider an investor’s participation in the local capital market in determining how much exposure to foreign equities will be allowed.

The SEC said the setup is intended to create a complementary relationship between domestic and international investing while supporting financial innovation.

The regulator will assess the offering’s operational framework, investor protection measures and regulatory implications throughout the testing period.

Results from the sandbox could eventually help shape SEC rules for similar products, potentially opening the door for more local brokers to offer access to overseas assets.

“As with other StratBox participants, this will be subject to approved testing parameters and regulatory oversight prescribed by the Commission throughout the testing period,” the SEC said.